An efficient tax for a product with detrimental externalities would equal
A. marginal social cost minus marginal external cost.
B. marginal private cost plus marginal external cost.
C. marginal external cost minus marginal private cost.
D. marginal social cost minus marginal private cost.
Answer: D
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A good for which demand decreases when income decreases is known as a(n) ________ good
A) normal B) inferior C) complementary D) substitute
One point on a market supply curve represents $4 and 100 units quantity supplied. If there are three suppliers, and at a price of $4 one of the suppliers supplies 23 units, then which of the following combinations of price and quantity supplied might hold for the other two suppliers?
A) At $4, quantity supplied could be 40 units for one supplier and 27 for the other. B) At $4, quantity supplied could be 33 units for one supplier and 27 for the other. C) At $4, quantity supplied could be 40 units for one supplier and 37 for the other. D) At $4, quantity supplied could be 77 units for one supplier and 10 for the other. E) There is not enough information to answer this question.
Assume an economy is producing only one product. Year 2 is the base year. Output and price data for a five-year period are given.YearUnits of OutputPrice Per Unit14$425537849951010Refer to the above data. If year 2 is chosen as the base year, the real GDP for year 1 is:
A. $20. B. $25. C. $4. D. $16.
The U.S. tax and transfer study done by economists Chamberlain and Prante of the Tax Foundation note that households in the top income quintile received about:
A. 75 cents in government spending for every dollar they paid in taxes B. 60 cents in government spending for every dollar they paid in taxes C. 40 cents in government spending for every dollar they paid in taxes D. 20 cents in government spending for every dollar they paid in taxes