The difference between a corrective tax and a tradable pollution permit is that
a. a corrective tax sets the price of pollution and a permit sets the quantity of pollution.
b. a corrective tax creates a more efficient outcome than a permit.
c. a corrective tax sets the quantity of pollution and a permit sets the price of pollution.
d. a permit creates a more efficient outcome than a corrective tax.
a
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Which of the following is true of an economic model? a. It is a simplified representation of a situation that includes enough of the key features to be useful. b. It is always based on a mathematical formula
c. It is a physical representation of a real world situation in a laboratory. d. It is always named after the economist who devises it.
Market failure: A case in which the __________ of govt intervention causes too much/not enough of a good to be produced at a ______ which is not ________________
Fill in the blank(s) with the appropriate word(s).
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter?
A. 2 B. 10 C. 15 D. 5
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit. 
How much does the fifth unit of labor add to the firm's total revenue?
A. $60 B. $80 C. $10 D. $40 E. $160