Who is affected when a Pigouvian tax is imposed on a market with a negative production externality?
A. Producers
B. Those affected by the externality
C. Consumers
D. All of these groups are affected when it becomes internalized.
Answer: D
You might also like to view...
Governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them. What type of market failure is involved?
A. Market power. B. Public goods. C. Externalities. D. Inequity.
For the past several decades, union membership in the United States has been declining. What has been happening in the rest of the world?
A) Union membership has been increasing in almost every other country. B) In almost every other nation, union membership has held constant. C) In most cases, union membership in other nations has also been falling. D) We do not know because other nations do not keep these statistics.
Market power refers to
A) the ability of consumers to dictate what products should be produced. B) the ability of a firm to advertise its product and succeed in selling more output. C) the ability of a firm to sell at a lower price than rival sellers. D) the ability of a firm to charge a price higher than the marginal cost of production.
If yesterday the dollar traded for 100 Japanese yen and today 101 yen to the dollar, we would say
A. that the dollar rose in value (appreciated) relative to the yen. B. that the yen fell in value (depreciated) relative to the dollar. C. both of the choices are correct. D. neither of the choices is correct.