Firms are likely to prefer a pollution tax to a command-and-control policy because the command-and-control policy will:
A. increase the costs of production more than a pollution tax.
B. result in the price of the good rising more than under a pollution tax.
C. result in consumers buying less of the good than under a pollution tax.
D. All of these
Answer: D
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There is greater support for passive policymaking when
A) price flexibility is common. B) wage flexibility is common. C) pure competition is widespread. D) all of the above.
"An increase in the federal minimum wage will provide a living wage for the working poor" is:
a. a statement of positive economics. b. a fallacy of composition. c. a tautology. d. a statement of normative economics.
When a certain competitive firm produces and sells 40 units of output, its total revenue is $740 . If there is no change in price, then what is the amount of the firm's total revenue if it produces and sells 45 units of output?
"My opponent in this election says she wants a balanced federal budget, but won't say how it would be achieved." This candidate is trying to
A) challenge his or her opponent's commitment to balancing the budget. B) get his or her opponent to say something that will allow a label of "left-wing" or "right-wing" to be attached on her. C) accuse the opponent of going exclusively after the median voter, who is never interested in ends, only means. D) accuse the opponent of going after the votes of the rationally ignorant.