What is a Pigovian tax? What happens to deadweight loss when a Pigovian tax is implemented?
What will be an ideal response?
A Pigovian tax is a government tax intended to bring about an efficient level of output in the presence of externalities. A Pigovian tax eliminates deadweight loss.
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The net gain to society from changing output from QC to QE is
Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation.
a. DG b. DEH c. DGH d. DEHG
The economist who won the Nobel Prize in Economics in 1995, and whose name is closely connected with rational expectations theory, is
A) Robert Solow. B) Paul Samuelson. C) Milton Friedman. D) Robert Lucas. E) John Maynard Keynes.
What differentiates a closed economy from other economies?
a. trading with many partners b. very little international trade c. heavy importing with few exports d. an emphasis on goods over services
When El Torito Restaurant is deciding how many waiters to hire for a holiday weekend, it is making a ________ decision
A) plant-size B) long-run C) short-run D) fixed-input