At the market output and price for a good whose production causes pollution,
a. pollution is eliminated
b. the marginal social cost of production exceeds the marginal social benefit of production
c. the private cost of production equals the private benefit of production
d. the marginal social benefit of production equals the marginal social cost of production
e. too little of the good is produced
B
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Describe the scale of redistribution in the United States
What will be an ideal response?
The combined effect (both income and substitution) of a wage increase is that
A) if the substitution effect outweighs the income effect, the labor supply curve slopes upward, but if the income effect outweighs the substitution effect, the labor supply curve is backward bending. B) the income effect always dominates, leading to less work at a higher wage. C) if the substitution effect outweighs the income effect, the labor supply curve is backward bending, but if the income effect outweighs the substitution effect, the labor supply curve slopes upward. D) the substitution effect always dominates, leading to more work at a higher wage.
Tax loopholes are equally available to all taxpayers.
Answer the following statement true (T) or false (F)
Higher breakeven levels of income can be achieved by decreasing
A. Earnings disregards. B. In-kind benefits. C. The marginal tax rate. D. Basic benefits.