When a negative externality is present in a market, when a tax is imposed, it is:
A. inefficient, because the net benefit of buying another unit is zero for all market participants.
B. efficient, because the net benefit of buying another unit is zero for all market participants.
C. efficient, because the government mandates the efficient quantity without regard for net benefits.
D. inefficient, because the government mandates the efficient quantity without regard for net benefits.
B. efficient, because the net benefit of buying another unit is zero for all market participants.
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. raises; raises B. lowers; raises C. raises; lowers D. raises; does not change
Full employment exists when
A) there is only frictional and structural unemployment. B) the economy is at the natural unemployment rate. C) there is no cyclical unemployment. D) All of the above answers are correct.
When the prisoners follow their dominant strategy and confess, they will be worse off than if both had remained silent—hence, the "prisoners' dilemma."
a. True b. False Indicate whether the statement is true or false
With pollution permits, the supply curve for pollution rights is
a. perfectly elastic. b. perfectly inelastic. c. upward sloping. d. downward sloping.