A corrective tax
a. causes each factory to reduce pollution by the same amount.
b. assigns a legal pollution limit for firms.
c. places a price on the right to pollute.
d. costs society more than pollution regulations.
c
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The following changes in a consumer's economic circumstances result in a steeper budget line with the vertical intercept unchanged. (Denote the good on the horizontal as good 1 and the good on the vertical as good 2.)
A. A k percent decrease in the price of good 2 combined with a k percent decrease in income B. A k percent increase in the price of good 2 combined with a k percent decrease in income C. A k percent decrease in the price of good 2 combined with a k percent increase in income D. A k percent increase in the price of good 2 combined with a k percent increase in income. E. None of the above
Constant returns to scale means that, given any constant x > 0
A) xzF(xK, xNd)= zF(xK, xNd). B) xzF(xK, xNd) > zF(xK, xNd). C) xzF(xK, xNd) < zF(xK, xNd). D) xzF(xK, xNd) = zxF(K, Nd).
Dynamic and static games have outcomes that
A) may be different. B) are always different. C) are not Nash equilibria. D) result from dominant strategies.
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be Select one:
a. Zero. b. 20 cents. c. 75 cents. d. 80 cents.