The biggest difference between using a Pigovian tax or a tradable allowance to correct for a negative externality is:
A. the tax creates an efficient outcome, and the tradable allowances do not.
B. the government collect revenues from the tax, and the private parties trade quota rights on their own.
C. the tax maximizes total surplus, but the tradable allowances do not.
D. All of these are differences between the two government policies.
Answer: B
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The families that applied for the Moving to Opportunity program wee assigned into three groups. Which of the following does not describe one of those groups?
A) People in one group received nothing but were able to live in public housing with their rents fixed at 30% of their household incomes. B) People in one group were moved to housing in neighborhoods with poverty rates of less than 10%, and those people received vouchers to pay for 100% of their rent. C) People in one group received a voucher they could use to help pay for private housing, with the voucher paying any rent beyond 30% of their household incomes. D) People in one group received a voucher they could use to help pay for private housing, with the voucher paying any rent beyond 30% of their household incomes, but the voucher was good only if the family moved to a neighborhood with a poverty rate of less than 10%.
The slope of the line from the origin to a given point on the curve equals
A) the increase in output. B) the change in input divided by the change in output. C) the average product of the input. D) the marginal product of the input.
Unanticipated inflation penalizes: a. those who are saving
b. those who are borrowing. c. governments. d. those who are in high-growth industries where wages are growing faster than prices. e. those who can't find jobs at any wage rate.
Compared with the expenditure approach to calculating GDP, the income approach is _____.
(A) More accurate (B) Connected more strongly to stock market performance. (C) Preferred by the average consumer (D) More practical