The major difficulty with using a tax on pollution instead of a fixed percentage reduction regulation is:
A. that it only works in theory.
B. that firms would not pay the tax.
C. establishing the optimal size of the tax.
D. that it would cause prices to rise.
Answer: C
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Which of the following is true about the demand curve facing the dominant firm?
A) It equals market demand minus fringe firms' supply curve. B) It is identical to market demand. C) It equals market demand minus demand facing the fringe firms. D) It is horizontal.
Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and there is wage discrimination in the union and nonunion sectors
If the union shifts its policy from maximizing total economic rents to maximizing total wages earned by members, what happens to the equilibrium employment level and wage for non-union workers? A) Both increase. B) Employment increases and wage declines. C) Wage increases and employment declines. D) Both decline.
Financial instruments used primarily as stores of value do not include:
A. a bank loan. B. asset backed securities. C. U.S. Treasury bonds. D. a car insurance policy.
Which statement is true?
A. This firm is in the short run.
B. This firm is in the long run.
C. This firm may be in either the short run or the long run.
D. It cannot be determined if this firm is in the short run or the long run.