An externality is an example of
a. a corrective tax.
b. a tradable pollution permit.
c. a market failure.
d. Both a and b are correct.
c
You might also like to view...
Refer to Figure 4.8. If half of your friends go to the beach and half go to the park, you will receive a payoff of ________ if you go to the park
A) 0 B) 250 C) 500 D) You cannot determine the payoff from the data in the figure.
Assume you have an income of $200 and you can only purchase two goods – good A and good B
If the price of good A and B are $1 and $2 how much of each good can purchase? Assume that the price of good A falls why would you now consider not only consuming more of good A but also more of good B? What's going on that might cause this behavioral response?
An increase in the price level
a. increases investment spending, thereby shifting the AD curve to the left b. does not shift the AD curve c. causes the government's budget deficit to fall d. increases investment spending, thereby shifting the AD curve to the right e. shifts the AS curve outward
The Consumer Price Index compares the
a. prices of all goods and services in the economy compared to the prices of those goods and services in a base year. b. prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. c. prices of producer goods and services that are made for consumers to the prices of those goods and services in a base year. d. prices of goods and services that are purchased by producers to the prices of those goods and services in a base year. e. prices of goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.