A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because
A) it places a unfair burden on small producers.
B) a uniform tax can only account for social costs and not external costs.
C) a firm will reduce production.
D) it may not adequately account for economic damages.
Answer: D
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Suppose the government imposes a tax of 20 percent on the first $50,000 of income and 30 percent on all income above $50,000 . What is the average tax rate when income is $60,000?
a. 21.7 percent b. 25.0 percent c. 46.7 percent d. 50.0 percent
In the long run, a profit-maximizing firm in a monopolistically competitive market operates at
a. efficient scale. b. a level of output at which average total cost is rising. c. a level of output at which average total cost is falling. d. the level of output at which total revenue is maximized.
Explain how the Russian crisis of 1998 began. What precipitated the crisis?
What will be an ideal response?
Which of the following is TRUE about the political and market systems of voting?
A) The political voting system functions according to proportional rule, while the market voting system functions according to majority rule. B) The political voting system functions according to majority rule, while the market voting system functions according to proportional rule. C) The political voting system functions according to minority rule, while the market voting system functions according to majority rule. D) The political system and the market system are identical.