A tax on a good whose production causes pollution will
A. raise the equilibrium price and raise the equilibrium quantity.
B. lower the equilibrium price and lower the equilibrium quantity.
C. raise the equilibrium price and lower the equilibrium quantity.
D. lower the equilibrium price and raise the equilibrium quantity.
Answer: C
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In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.
Probit coefficients are typically estimated using
A) the OLS method B) the method of maximum likelihood C) non-linear least squares (NLLS) D) by transforming the estimates from the linear probability model
In a closed economy private saving is $500 billion and the government budget deficit is $100 billion. What is investment?