It is possible for a tax to "internalize" an externality

Indicate whether the statement is true or false


T A tax can confront the cause of an externality, say one who pollutes the air, with the costs of that pollution, and thus induce efficient decisions.

Economics

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The double taxation problem occurs because households pay taxes on dividends and capital gains from stock and corporations pay taxes on corporate profits

Indicate whether the statement is true or false

Economics

A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing

A. its money supply. B. its interest rates. C. its level of real GDP. D. aggregate demand.

Economics

Our rate of productivity growth began to slow very substantially around the year _____.

Fill in the blank(s) with the appropriate word(s).

Economics

One of the benefits of the European Monetary Union is that

A. exchange-rate transaction costs and exchange-rate risks within the euro area are nearly eliminated. B. there is no reason for a crisis to hit the countries of the euro area. C. governments of the member nations are forced to maintain balanced budgets. D. governments of the member nations are free to erect trade barriers according to their needs.

Economics