Which of the following is an example of a Pigovian tax?
A) a tax imposed on a utility that internalizes the cost of externalities caused by the utility
B) payments by utilities to obtain tradable emission allowances
C) payments for licenses to pollute
D) a payroll tax
A
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Which of the following represents the equation that would be used to determine the yield to maturity of a three-year fixed payment loan of $1400 which has payments of $500 per year?
A) $1400 = $500/(1+i) + $500/(1+i)2 + $500/(1+i)3 B) $1400 = $500/(1+i)3 C) i = (1400-500)/1400 D) $1400 = $500/(1+i) + $500/(1+i)2 + $500(1+i)3 + 1400/(1+i)3
A demand curve that has constant price elasticity of demand coefficient equals to one at all points is a(n):
a. rectangular hyperbola. b. downward-sloping straight line. c. upward-sloping straight line. d. none of these.
Which of the following best defines positive externalities?
a. Beneficial spillovers to a third party b. Monetary benefits to stakeholders c. Dollar values of societal benefits d. Rates of return for innovators
What a consumer actually pays for a good is known as the ______.
a. price ceiling b. market price c. price floor d. deadweight price