Who is affected when a Pigouvian subsidy is imposed on a market with a positive externality?
A. Producers
B. Consumers
C. Those affected by the externality
D. All of these groups would be affected.
D. All of these groups would be affected.
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A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A. double B. less than double C. more than double D. remain constant
Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home should
A) export cloth. B) export widgets. C) export both and import nothing. D) export and import nothing. E) export widgets and import cloth.
If credit cards were suddenly ruled illegal and were no longer used, the most likely effect would be a decrease in the
a. demand for money. b. level of cash balances. c. average checking account balance. d. velocity of circulation.
The __________ is the price of money (loanable funds).
A. wage B. rent C. demand D. interest rate