The major problem with common ownership is that too much of the commonly owned resource is consumed, and not enough is produced
a. True
b. False
Indicate whether the statement is true or false
True
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"To find the economy's marginal social benefit curve for a public good, we sum the individual marginal benefit curves horizontally." True or false? Explain
What will be an ideal response?
Reducing ________ unemployment may be beneficial for an economy, but reducing ________ unemployment to zero would definitely reduce the efficiency of the economy
A) structural and frictional; cyclical B) frictional and cyclical; structural C) the natural rate of; cyclical D) structural and cyclical; frictional
Who is affected when a Pigouvian tax is imposed on a market with a negative production externality?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
A tax elasticity of supply equal to zero indicates that
A. Employers will not hire any workers if tax rates increase. B. Workers will not cut back on the number of hours worked if tax rates increase. C. Employers will hire more workers if tax rates increase. D. Workers will not work at all if tax rates increase.