In the single-polluter case, suppose a firm faces an emission charge implemented as a marginal tax (MT) of 12 and that its MAC = 0.8A. Based on this information, the firm
a. is better off paying the tax at abatement levels below 15 units
b. should abate pollution for all abatement levels up to 15 units
c. is better off paying the tax as long as the abatement level is 1.5 units or less
d. none of the above
b. should abate pollution for all abatement levels up to 15 units
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The net loss of total surplus that results from the misallocation of resources is referred to as ______.
a. producer surplus b. consumer surplus c. subsidy gain d. deadweight loss
In economics, the term "leisure" refers to:
A. nonwork activities that individuals enjoy doing. B. all nonwork activities. C. the vacation time on receives when working. D. those activities that individuals enjoy doing.
The price of one product in terms of another commodity is called its
A) relative price. B) money price. C) financial price. D) converse price.
Which of the following is a likely objective of monetary policy?
A) achieving price stability B) stabilizing economic activity C) closing the output gap to zero D) all of the above E) none of the above