A Pigovian tax is a tax:
A. meant to counter the effect of a negative externality.
B. that increases efficiency in a market.
C. that increases total surplus in a market.
D. All of these statements are true.
D. All of these statements are true.
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Emissions permits allow polluters to pay for the right to pollute a specified amount
a. True b. False Indicate whether the statement is true or false
Which of the following does not help explain the direction the quantity of aggregate goods demanded changes when the price level decreases?
a. consumer wealth rises b. borrowing rises c. each dollar is worth more domestic goods d. the dollar appreciates relative to other currencies
Refer to the above figure. The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. What is dominant strategy for Bob?
A. Confess. B. Don't confess. C. Flip a coin to decide what to do. D. There is no dominant strategy.
Among the groundbreaking contributions to economics made by John Maynard Keynes is
A) the insight that recessions can result from a lack of aggregate demand. B) the development of the spending multiplier. C) the theory of sticky wages and prices. D) all of the above