The biggest difference between using a Pigovian tax or a tradable allowance to correct for a negative externality is:
A. the government collect revenues from the tax, and the private parties trade quota rights on their own.
B. the tax creates an efficient outcome, and the tradable allowances do not.
C. the tax maximizes total surplus, but the tradable allowances do not.
D. All of these are differences between the two government policies.
A. the government collect revenues from the tax, and the private parties trade quota rights on their own.
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The aggregate demand for money can be expressed by
A) Md = P × L(R,Y). B) Md = L × P(R,Y). C) Md = P × Y(R, L). D) Md = R × L(P,Y). E) Md = R × L(R, P).
Demand elasticity equals quantity times price
a. True b. False Indicate whether the statement is true or false
A monopolist
A. Has a perfectly inelastic demand curve B. Is a price taker C. Can always increase price to increase economic profit D. Is a price maker E. Has no control over the market price of a product it sells
Investment in physical capital means
A. purchasing supplies. B. purchasing equipment and buildings. C. taking out loans. D. hiring more employees.