If the social costs of refining oil are greater than the private costs of oil refining, then
A) the external costs of oil refining are greater than the social costs of oil refining.
B) users of products that use refined oil are paying too much for the products.
C) there is too much oil refining.
D) the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.
Answer: C
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The advantage of imposing a tax on the producer that generates pollution is that
A) it will eliminate pollution. B) the government can keep tabs on exactly what is produced in an industry. C) a producer can pass the cost of pollution to the victims of the pollution. D) it forces the polluting producer to internalize the external cost of the pollution.
In a market economy, incomes would be very equal if there was no discrimination
a. True b. False Indicate whether the statement is true or false
An increase in a consumer's income will cause the budget line to:
A. shift outward. B. shift inward. C. become steeper. D. become flatter.
Which of the following will accelerate long-run economic growth?
A. Tax credits for new investments. B. Crowding out. C. Elimination of infrastructure development. D. Elimination of government-subsidized college loans.