The government would use production taxes to remedy the problem of substantial:
a. internal benefits of production.
b. external benefits of production.
c. external costs of production.
d. external benefits of consumption
e. external costs of consumption.
c
You might also like to view...
A market failure is a situation in which
A) resources are being efficiently allocated, but some companies are forced to shut down. B) the market equilibrium leads to either too many or too few resources going towards producing the good or service. C) the government must take actions to correct the failures of the market in a particular industry. D) there is no free entry or exit into an industry.
The demand curve a monopolist faces
a. is more elastic than a perfectly competitive firm's demand curve b. is the market demand curve c. is as elastic as a perfectly competitive firm's demand curve d. is not affected by the prices of complements e. will not shift in response to a change in consumer tastes
Answer the next question on the basis of the following information about the hypothetical economy of Asland. All figures are in millions.Unemployed7Total population145Employed95Discouraged workers3The unemployment rate in Asland is
A. 5.0%. B. 6.9%. C. 3.2%. D. 2.5%.
In a graph showing the short-run cost curves, the one curve which declines continuously as we expand output is called
A. the average total cost curve. B. the marginal cost curve. C. the average variable cost curve. D. the average fixed cost curve.