Pollution taxes are preferred to direct controls because they don't require a way of measuring pollutants produced
a. True
b. False
Indicate whether the statement is true or false
False
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As the market price of a service increases, more potential sellers will decide to perform that service because:
A. more potential sellers will find that the market price exceeds their reservation price. B. higher prices result in higher revenue. C. it's more prestigious to produce high-priced services. D. higher prices lead to lower opportunity costs.
The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. Now suppose a Pigovian tax is successfully implemented and the efficient quantity of paper is produced
What is the total tax revenue collected by the government per week? A) $120 B) $840 C) $1,200 D) $1,800
The Civil War (1861–1865) was the root of which modern-day belief(s)?
(a) The Thirteenth Amendment of the Constitution, which prohibits slavery and involuntary servitude in the U.S. (b) The belief that wars can stimulate industrialization. (c) The belief that wars can effectively mobilize resources, boost employment and heighten production without inflationary consequences. (d) All of the above.
If the government sets a specific tax and an ad valorem tax so that they raise the same amount of tax revenue, why does the ad valorem tax reduce output less than the specific tax?
What will be an ideal response?