As compared to a pollution tax, a command-and-control policy will increase production costs by a ________ amount and increase equilibrium price by a ________ amount.
A. larger; larger
B. larger; smaller
C. smaller; larger
D. smaller; smaller
Answer: A
You might also like to view...
According to the authors of your text, the phrase "property rights" can be substituted with the phrase
A) "property wrongs." B) "what people think they can get away with." C) "animal rights." D) "rugged individualism." E) "free market capitalism."
Which of the following steps should Bufton Dairy, a firm selling dairy products, take in order to earn positive economic profits?
a. Offering products that are identical to those of its rivals b. Producing at the highest point on its average total cost curve c. Acquiring most of its rivals d. Selling only one dairy product
Which of the following statements is a correct interpretation of some economists' views?
A. When the rich do well, the total pie is increased so much that the benefits that trickle down to the poor are greater than the proceeds they would get from redistribution. B. When the government gives income to the head of a household, other members of the household remain in need. C. When the rich do well, the total pie is decreased, so that the poor are worse off than they were before. D. When the incomes of the poor are increased, the poor purchase more goods and services, and this causes lower profits.
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is
A. 1/4 of a gardenburger. B. 1 gardenburger. C. 2 gardenburgers. D. changing as Mr. Lingle moves down his budget constraint.