When a Clarke tax is used to finance a public good, each person's tax equals
a. the amount that he is willing to pay for the good.
b. the difference between the value he places on the public good and its cost.
c. the cost of the public good minus the value that other people claim to receive from it.
d. everyone else's tax, with the sum equaling the cost of producing the public good.
c. the cost of the public good minus the value that other people claim to receive from it.
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Indicate whether the statement is true or false
Suppose the U.S. dollar price of the Japanese yen decreases. Given this information, which of the following is correct?
A) The dollar has appreciated. B) The dollar has depreciated. C) The yen has appreciated. D) The yen price of the dollar decreased.
Consider a market characterized by a Herfindahl-Hirschman index of 5,000. One of the firms in this market has a Lerner index of 0.89 and is considering a horizontal merger with a competing firm. Based on this information, it is likely that the U.S. Department of Justice will:
A. reject the merger since the industry is highly concentrated, even though the firm proposing the merger has little market power. B. reject the merger since the industry is highly concentrated and the firm proposing the merger has significant market power. C. approve the merger since the industry is not concentrated and the firm proposing to merge has little market power. D. None of the answers are correct.
Which of the following is true of trade embargoes?
A. Trade embargoes refer to import bans on tangible goods, but not on services. B. Embargoes are discriminatory restrictions or bans on economic exchange. C. Unlike other trade restrictions, a trade embargo does not harm the imposing country. D. A trade embargo refers to a uniform tariff being imposed on all imported products by a country.