The share of the burden of an emissions tax on output borne by the consumer of the polluting output will rise as
a. the tax rises.
b. demand elasticity falls.
c. demand elasticity rises.
d. the tax falls.
b
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Institutions:
A) are mostly outside of human control. B) place constraints on human behavior, and these constraints may not be absolute. C) cannot be changed over time. D) do not affect incentives.
Refer to Figure 12-20. If the market price is P1, what is the allocatively efficient output level?
A) Q0 B) Q1 C) Q2 D) There is no allocatively efficient output level because the firm is making a loss.
The liquidity-money (LM) curve shows the alternative combinations of interest rates and real income that clears the money market
Indicate whether the statement is true or false
Economic profit is defined as the difference between revenue and ____
a. explicit cost b. total economic cost c. implicit cost d. shareholder wealth e. none of the above