To reach an economically efficient output level, the size of an excise tax imposed on a firm generating a negative externality should be
a. the firm's marginal cost.
b. the social marginal cost.
c. the difference between the social marginal cost and the firm's marginal cost.
d. the sum of the social marginal cost and the firm's marginal cost.
c
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By the first years of the 21st century, the rate of inflation in the United States had fallen to between ________ percent
A) 1 and 2 B) 4 and 5 C) 5 and 6 D) 8 and 10
A technological change would cause movement along the demand curve for inputs.
Answer the following statement true (T) or false (F)
An economy with nominal tax rates significantly higher than effective tax rates has
A. A regressive tax system. B. Loopholes in the tax code. C. A progressive tax system. D. Large in-kind benefits.
Alejandro expects the price level to rise from 105 this year to 108 next year. If the price level rises to 110 next year instead of 108, which of the following will occur?
A) Alejandro's real wage rises. B) Alejandro's real wage remains unchanged. C) Alejandro's real wage may rise or fall, depending on the unemployment rate. D) Alejandro's real wage falls.