The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax
What is the tax per vehicle mile that will achieve the efficient outcome? A) $2
B) $4
C) $6
D) $8
C
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A gasoline tax to finance highways is a fairly good example of democratic decision-making resulting in the efficient level of output
a. True b. False
Interest can be defined as
A) the amount of funds loaned to a creditor. B) the participation of a shareholder in the operations of a firm. C) the return paid to owners of capital. D) the return above opportunity cost paid to owners of a firm.
The second phase of the Industrial Revolution took place in ____ (which country) during the early years of the ____ century.
Fill in the blank(s) with the appropriate word(s).
Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. When Leo's earnings are less than $300, each extra dollar he earns causes his total income (earnings plus benefits) to:
A. fall by 50 cents. B. fall by 25 cents. C. rise by 50 cents. D. rise by 75 cents.