An emission charge is
A. An attempt to change consumers' behavior by direct government intervention.
B. A fee imposed on polluters based on the quantity of pollution they generate.
C. A subsidy to the consumers who are hurt by pollution.
D. A charge on consumers who buy goods made by firms that pollute.
Answer: B
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If a firm's demand curve slopes downward, the firm's
a. marginal revenue will rise as price is reduced b. marginal revenue will generally be less than price c. total revenue will decline continuously as price is reduced d. marginal revenue will always be greater than its demand e. average revenue will increase continuously as output increases
Some cities finance their airports with a departure tax: every person leaving the city by plane is charged a small fixed dollar amount that is used to help pay for building and running the airport. The departure tax follows the:
a. benefits-received principle. b. ability-to-pay principle. c. flat-rate taxation principle. d. public-choice principle.
If you buy a commemorative Princess Diana stamp issued by the British government, the purchase is considered part of
a. C b. I c. G d. X e. M
Which of the following is correct?
a. Incomes tend to be high for young workers. b. Incomes tend to rise sharply at retirement. c. Incomes tend to peak at around age 50. d. Current income is more equally distributed than permanent income.