If the government does not know the efficient level of a Pigouvian tax to correct for a negative production externality, efficiency will still be enhanced so long as the government imposes a per-unit tax.
Answer the following statement true (T) or false (F)
False
Rationale: This is not true if the government imposes too high a per-unit tax relative to the efficient Pigouvian tax.
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If you have a choice between studying and doing another activity, you will devote your time to studying as long as the additional benefit of studying is greater than the additional cost of studying
a. True b. False Indicate whether the statement is true or false
Which will not, ceteris paribus, cause the demand curve for good A to shift?
a. A change in the price of C, a substitute b. A change in the price of A c. A change in the price of B, a complement d. An increase in average income
Based on the anchoring effect, a seller has an incentive to plant a relatively ________ number in the buyer's head, and a buyer has an incentive to plant a relatively ________ number in the seller's head.
A. large; large B. large; small C. small; large D. small; small
At its profit-maximizing output, the given nondiscriminating monopolist:
A. incurs a loss.
B. earns an economic profit of $250.
C. earns a normal profit of $250.
D. earns an economic profit of $150.