If a Pigovian tax is levied on consumers, the demand curve will shift:
A. straight up, decreasing quantity.
B. straight down, decreasing quantity.
C. straight down, increasing quantity.
D. straight up, increasing quantity.
B. straight down, decreasing quantity.
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________ attempts to reduce negative externalities by ________
A) Negotiation; discovering who has which rights B) Negotiation; creating new rights C) Legislation; creating new rights D) Legislation; discovering who has which rights
The logic of the multiplier effect applies
a. only to changes in government spending. b. to any change in spending on any component of GDP. c. only to changes in the money supply. d. only when the crowding-out effect is sufficiently strong.
Rita makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Rita's trip to the concert is:
A. $500. B. $600. C. $450. D. $300.
Given the production function and total cost function shown in Chapter 4, as production increases, total variable costs
A. decrease constantly. B. increase constantly. C. increase for a while and then decrease. D. decrease for a while and then increase.