What is a major criticism of corrective taxes?
a. They are done for political reasons rather than reducing externalities.
b. They place most of the burden on the worst offenders.
c. They unfairly burden the wealthy to pay for the actions of others.
d. They disproportionally impact low-income people.
d. They disproportionally impact low-income people.
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The marginal social cost of production is the
A) marginal private cost plus the marginal external cost. B) same as the marginal cost of any externality. C) total cost of any externality. D) marginal private cost minus the marginal external cost.
Which of the following criticisms is NOT directed to the IMF?
A) It lacks openness in its decision-making process. B) It serves the interests of wealthier countries. C) It creates a free-riding problem. D) It violates national sovereignty. E) It is heavily bureaucratic and at times gives harmful advice.
If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel
A) airlines would charge the same price to each type of flyer. B) airlines would still charge business flyers a higher fare since the traveler's employer pays anyway. C) airlines would be driven out of business. D) airlines would counter by charging vacationers a higher fare.
Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.AssetsLiabilities & Net WorthReserves$27,000 Checkable Deposits$110,000Loans50,000 Stock Shares200,000Securities33,000 Property200,000?Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit and has a check cleared against it for that amount, the bank will now have excess reserves of:
A. $5,000. B. $0. C. $12,000. D. $3,000.