The tax interaction effect is the _________ in excess burden in the labor market stemming from the _______ in real wages caused by a Pigouvian tax.
A. increase; increase
B. reduce; reduction
C. increase; reduction
D. reduction; increase
C. increase; reduction
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What is the level of openness of the United States economy, based on 2016 data?
A. 13.3 percent B. 23.1 percent C. 52.0 percent D. 63.9 percent E. 77.8 percent
Taking into account the utility of all persons in society is referred to as
A. an utilitarian social welfare function. B. equalizing social welfare function. C. an in-kind transfer. D. a Pareto equilibrium.
Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 100 MC = .2q + 2 The firm's supply curve is given by
a. q = 5P - 10 b. q = .2P +2 c. q = 10P - 2 d. q = 2P - 5
What happens when a command-and-control regulation has been satisfied?
a. Polluters get a pollution charge tax break. b. Polluters have access to new marketable permits. c. Polluters have no incentive to do better. d. Polluters have many incentives to do better.