An excise tax
A) acts as a negative incentive to consume that good or service.
B) is illegal in Florida, Georgia, and Alaska.
C) is often used to encourage the use of a good.
D) is a value added tax (VAT).
A
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In a market for homogenous goods:
A. firms sell identical products. B. firms sell different products. C. firms sell identical products for identical prices. D. firms sell different goods for identical prices.
Which of the following are among the effects of exposure to SO2 and NOX?
a. visibility impairment c. forest damage b. acidification of surface waters d. all of the above
Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market. b. there are no barriers to entry in the market. c. the business-stealing externality is present in the market. d. the government does not impose regulations on the market.
Cartel agreements are difficult to sustain because:
A. it's usually easy to discover if one of the members has cheated. B. cartel members do not face the economic incentives inherent in a prisoner's dilemma. C. it's a dominant strategy for each cartel member to cheat on the cartel agreement. D. the collective payoff to all the cartel members is lower when they all abide by the cartel agreement.