Who is affected when a Pigouvian tax is imposed on a market with a negative production externality?
A. Producers
B. Consumers
C. Those affected by the externality
D. All of these groups are affected when it becomes internalized.
D. All of these groups are affected when it becomes internalized.
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Which of the following is likely to shift the demand curve for corn farmers leftward, assuming all else equal?
A) A fall in the productivity of corn farmers due to increased pest attacks B) A rise in the productivity of farmers due to better fertilizers C) A fall in the wage rate of corn farmers D) A rise in the wage rate of corn farmers
If a retail food chain merged with a meat packing company, this would be an example of a
A) horizontal merger. B) conglomerate merger. C) vertical merger. D) diagonal merger.
The long-run average cost of producing 12 units of output is $54; the long-run average cost of producing 13 units is $56. These numbers illustrate:
A. diseconomies of scale. B. economies of scope. C. economies of scale. D. diminishing marginal productivity.
Fiscal policy is typically:
A. extremely flexible provided policy lags are short. B. extremely flexible because most government spending is discretionary. C. difficult to implement quickly. D. flexible despite the presence of implementation problems.