Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government imposes a $5 per-unit tax on the producers. What is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?
a. They are equal.
b. The after-tax equilibrium quantity is greater than the socially optimal quantity.
c. The after-tax equilibrium quantity is less than the socially optimal quantity.
d. There is not enough information to answer the question.
a
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Microeconomics is the branch of economics in which you study inflation and unemployment in the economy
a. True b. False Indicate whether the statement is true or false
The reason poor, young, unmarried women allow themselves to get pregnant is so they can get on welfare, according to conservatives like ____________.
Fill in the blank(s) with the appropriate word(s).
Which of the following pieces of legislation is aimed at curbing the negative effects of externalities?
A. Robinson-Patman Act B. Clean Air Act C. Truth in Lending Simplification Act D. Lanham Act
Suppose that the Consumer Price Index for a particular economy rose from 110 to 120 in year 1, 120 to 130 in year 2, and 130 to 140 in year 3. We could conclude that this economy is experiencing:
A. accelerating inflation. B. deflation. C. disinflation. D. a constant rate of inflation.