To totally internalize an externality, a government can levy a tax related only to the physical quantity of pollution if
A) the economic damages associated with the pollution are different across different locations.
B) the economic damages are too large to be determined.
C) the economic damages associated with the pollution are the same across different locations.
D) the economic damages are zero.
C
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Why might an oil cartel's effectiveness be undermined during a recession but strengthened during an economic boom?
What will be an ideal response?
An example of a sunk cost would be:
A. the cost of a movie ticket once you've started watching the movie. B. the value of a lift ticket once you've started skiing. C. the admission fee you paid to enter a national park. D. All of these are examples of sunk costs.
According to evidence from around the world, the real losers in globalization of the world economy are:
a. non-government organizations. b. environmental activists. c. skilled laborers in the globalizing nations. d. countries that have not participated in the globalization process. e. the poorest people in the globalized developing countries.
New classical economists believe that monetary and fiscal policies are never effective
Indicate whether the statement is true or false