How does a pollution tax work?
What will be an ideal response?
A pollution tax raises a firm's private costs, decreasing supply, and reducing exchange and consumption of the product, thereby reducing pollution. Avoiding the tax is an incentive for the firm to reduce pollution.
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Assuming that the part of the government's budget used for military expenditures reduces the amount available for consumption expenditures and that the benefits to military expenditures take longer to accrue than consumption expenditures, _____
decision-makers will _____. a. democratic; be biased against military spending b. democratic; be biased in favor of military spending c. autocratic; be biased in favor of consumption d. autocratic; be biased in favor of military spending
The Prisoners' Dilemma is a particular type of game in which negotiation and enforcement of binding contracts is not possible, and such games are known as:
A) cooperative games. B) noncooperative games. C) collusive games. D) Cournot games.
To evaluate whether a society is better or worse off than a year before, you really want to look at changes in real GDP
Indicate whether the statement is true or false
________ is an experiment that tests the significance of fairness in consumer decision making
A) The fairness challenge B) The consumer choice paradigm C) The ultimatum game D) The Giffen paradox