Refer to the figure above. Which of the following methods is the best to compensate the losers from opening Lithasia to international trade?
A) Sellers in Lithasia could be taxed and the revenue could be used to compensate buyers.
B) Buyers in Lithasia could be taxed and the revenue could be used to compensate sellers.
C) Both buyers and sellers could be taxed and the revenue could be retained by the government.
D) The sellers in Lithasia could sell the pens at a price above the equilibrium price in the domestic market.
B
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What percentage of American families pay more payroll tax than they pay in income tax?
A. 40. B. 60. C. 75. D. 80.
When Ft McClellan closed down, the decline of production at the Fort fell by 500M. The economic impact on the area was even larger. Why was it larger?
a. people lost jobs at the fort, resulting in a loss of wages of 400M (Assume the MPC was 4/5) b. the military produced fewer high-tech goods in Calhoun County c. businesses located near to the Fort suffered losses in sales d. the positive impact on the environment of closing the Fort brought in many more tourism dollar than the loss of military jobs
Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.
A. 6 units of food; $24 B. 0 units of food; $0 C. 10 units of food; $20 D. 4.29 units of food; $25.71