Which of the following is true regarding pollution charges?
i. They force a polluter to pay a price for its pollution.
ii. They are based on the marginal external cost of pollution.
iii. The fee that produces the efficient amount of pollution is easily determined.
A) i only
B) i and ii
C) ii and iii
D) i, ii, and iii
E) i and iii
B
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In the years before the Civil War, Southern states, because of high protective tariffs, were forced to buy most of their manufactured goods from _________.
Fill in the blank(s) with the appropriate word(s).
In order to determine tax incidence, one must
a. consider issues of equity. b. also determine the legal liability of the tax. c. evaluate where the tax burden eventually falls. d. use the "flypaper theory" of taxation.
On a bank's T-account, which are part of the bank's assets?
a. both deposits made by its customers and reserves b. deposits made by its customers but not reserves c. reserves but not deposits made by its customers d. neither deposits made by its customers nor reserves
A single firm that charges the monopoly price in the market earns $600. If another firm successfully enters the market, the incumbent's profits fall to $350 and the entrant earns $275. If the incumbent engages in limit pricing, its profits are $400. For what interest rate, i, is limit pricing a profitable strategy for the incumbent?
A. 0.25 < i < 0.75 B. i > 4 C. i < 0.25 D. 0.75 < i < 4