When a tax on emissions into the air accurately reflects the cost to all members of society of an additional unit of the emissions, it
A) amounts to no more than a license to pollute.
B) encourages firms to reduce emissions as long as the cost of doing so is less than the cost of continuing the emissions.
C) gives firms little incentive to search for less-polluting production processes.
D) will not prevent large and profitable firms from polluting.
B
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In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
A. division of labor B. interconnected economy C. task economy D. modern economy
The government regulates food additives
A. To restrain the market power of food producers. B. To prevent externalities. C. To keep food producers from dominating their markets. D. To assess their safety.
If the balance of payments accounts of a country shows a current account deficit, it means that
A. the country's foreign assets are growing more quickly than its foreign liabilities. B. the country's exports are higher than its imports. C. the country's foreign assets are growing more slowly than its foreign liabilities. D. the country is acting as a net lender to the rest of the world.
The difference between public goods and private goods rests on technical considerations of exclusion of use and not political philosophy.
Answer the following statement true (T) or false (F)