An effluent fee
A. is a reward to companies using production methods that create positive externalities.
B. is intended to influence the market by increasing supply and decreasing price.
C. is also called a pollution subsidy.
D. gives a firm the right to pollute if it pays a tax on what it discharges.
Answer: D
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The above figures show the market for oranges. Which figure(s) shows the effect of a nation-wide consumer boycott of eating oranges?
A) Figure B B) Figure C C) Figures B and C D) Figures A and D
If the regulator wanted to maximize the total surplus in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost. B) average total cost. C) average variable cost. D) marginal cost.
The uncertainty of inflation is likely to affect:
A. Production and consumption decisions. B. Production decisions but not consumption decisions. C. Consumption decisions but not savings. D. The elderly on fixed incomes but not current wage earners.
When the federal government crafts environmental policies that make it less expensive for firms to follow green? initiatives