Compared to a fixed percentage reduction regulation, a tax on pollution encourages:
A. big firms to make larger reductions because they can more easily afford it.
B. firms that can more cheaply reduce pollution to make larger reductions.
C. firms to use the same technology to reduce pollution.
D. firms to reduce pollution by the same percent.
Answer: B
You might also like to view...
If the unemployment rate is less than the natural unemployment rate, then
A) there is no frictional unemployment. B) cyclical unemployment is greater than zero. C) real GDP is less than potential GDP. D) real GDP is greater than potential GDP. E) frictional unemployment is negative.
Ed Van Zaig is considering opening a sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building he owns and currently rents for $6,000 a year. His costs at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the minimum revenue he must earn per year in order for it to be worth his while to open his sushi
bar? a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
The largest component of GDP is
Supply-side tax cuts tend to benefit the rich because tax cuts
A. on income tend to benefit high-income earners more than low-income earners. B. on savings benefit high-income earners who do most of the personal saving. C. for capital formation tend to benefit those with the means to accumulate capital. D. on capital gains tend to benefit those with larger financial assets. E. All of the above are correct.