When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce
a. a negative externality for the community
b. a positive externality for the community
c. more jobs in the community
d. tax revenue for the community
e. improved criminal justice options
A
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Advertising has no effect on the demand schedule for a good.
Answer the following statement true (T) or false (F)
The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price is $1,000 for a ton of turnips. In the long run, the market supply of turnips will ________
A) decrease and the price of a ton of turnips will fall to $600 B) increase and the turnip grower's economic profit will increase C) increase and the turnip grower's economic profit will decrease D) decrease and the price of a ton of turnips will rise to $1,200
The optimal quantity of pollution is: a. zero
b. the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount. c. the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount. d. none of the above.
Which of the following is a difference between corrective taxes and tradable pollution permits?
a. Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy. b. With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution. c. With corrective taxes firms pay for pollution; with tradable pollution permits firms do not. d. Corrective taxes internalize the pollution externality while tradable pollution permits do not.