The tax approach may be favorable over a direct controls approach to pollution cleanup because
A. all firms face identical costs.
B. large firms are the most likely to reduce their pollution and therefore, have the greatest impact.
C. small firms are most likely to reduce their pollution since they are most efficient at it.
D. firms that have the ability to reduce pollution at the lowest cost do so, while others do not.
Answer: D
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Which of the following shifts the supply curve for good X leftward?
A) a situation in which quantity demanded exceeds quantity supplied B) an increase in the cost of the machinery used to produce X C) a technological advance in the production of X D) a decrease in the wages of workers employed to produce X
Total debt is more important in figuring out the ability of a country to service its debt than are debt to GDP and debt to export ratios
Indicate whether the statement is true or false
In the problem of double marginalization, the resulting price is ______than if the manufacturer and the retailer were to merge
a. Higher b. Lower c. The same d. None of the above
Suppose the price elasticity of supply for coffee is equal to one. 1,400 cups of coffee are supplied when its price is $4.0 per cup. If the price of coffee decreases to $3.60 per cup, its supply will: a. decrease to 1,260 cups
b. increase to 1,540 cups. c. decrease to 1,300 cups. d. remain the same at 1,400 cups.