Use the above table. What will the output level be when external costs are internalized with a tax?
A. 4
B. 5
C. 6
D. 7
Answer: B
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Investment spending includes spending on:
A. consumer durable goods. B. stocks and bonds. C. services. D. new capital goods.
Which of the following will lead to an increase in the gross domestic product of a country?
A) An increase in expenditure on investment goods B) A fall in the expenditure on consumption C) A fall in the expenditure incurred by the government D) An increase in imports
The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment? b) Describe the market at a wage rate of $6 per hour. c) Describe the market at a wage rate of $12 an hour. d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
If policymakers implement an expansionary fiscal policy but do not take into account the potential for crowding out, the new equilibrium level of GDP is likely to
A) be at potential GDP. B) be below potential GDP. C) be above potential GDP. D) There is insufficient information given here to draw a conclusion.