Compared to regulations, corrective taxes on pollution ______.
a. provide less incentive to reduce pollution
b. provide little benefit to the public
c. create a higher level of efficiency
d. create higher numbers of negative externalities
c. create a higher level of efficiency
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Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000, and lemons are worth $4,000. If the market is such that only lemons are sold, then used cars are
A) experience goods and the used car market has effective signals. B) experience goods and the used car market lacks effective signals. C) not experience goods and the used car market has effective signals. D) not experience goods and the used car market lacks effective signals.
Monetarists believe that there is a ________ link between money supply growth and target variables and that the public is ________ in movements in the money supply
A) strong, interested B) strong, disinterested C) tenuous, interested D) tenuous, disinterested
Refer to the above figure. A unit tax of $2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?
A) The distance is less than $2. B) The distance is $2. C) The distance is more than $2. D) The distance cannot be determined with the information given.
All other things unchanged, higher saving rates contribute to higher rates of capital formation.
a. true b. false