When government corrects a market with an externality present by allowing participants to buy up to the point where their net benefit is zero, they must be:
A. offering a Coase tax.
B. imposing a tax.
C. imposing a tariff.
D. mandating a quota.
Answer: B
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Why did the EU countries move away from the EMS toward the goal of a single shared currency?
What will be an ideal response?
Firms that can choose what price they will charge for their product and can increase the number of units sold by reducing price are called
a. price searchers. b. price leaders. c. purely competitive. d. price takers.
Diversification
A) puts the law of large numbers to work for you. B) eliminates the risk of investing in the stock market. C) generally leads to lower rates of return than an average stock picker could earn from equity investments. D) indicates that you should invest in the company for which you work and in whom you trust.
Based on the transactions in the above table, what is the change in the U.S. capital account?
A) $9,800 B) $10,000 C) -$20,000 D) -$20,200