Most economists prefer corrective taxes to regulation as a way to correct the problem of pollution because
a. the market-based solution is less costly to society.
b. the market-based solution can result in a greater reduction in pollution.
c. the market-based solution raises revenue for the government.
d. All of the above are correct.
d
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A shoe-store having a BOGO (buy one get one free) sale is what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
By continuing to operate when price is greater than average variable cost but less than average total cost, a firm limits its losses to:
A) $0. B) its total fixed costs. C) the difference between its total fixed cost and the amount by which total revenue exceeds total variable costs. D) its total variable costs.
For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be larger than the substitution effect. B) the income effect would have to be smaller than the substitution effect. C) the income effect would have to be equal to the substitution effect. D) the income effect and the substitution effect would have to be nonexistent.
Refer to the diagram. If actual production and consumption occur at Q 2 :
A. efficiency is achieved.
B. an efficiency loss (or deadweight loss) of a + b + c + d occurs.
C. an efficiency loss (or deadweight loss) of a + c occurs.
D. an efficiency loss (or deadweight loss) of e + f occurs.