Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit.
Answer the following statement true (T) or false (F)
False
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Earnings of a resource is termed as economic rent if:
a. it has a perfectly elastic demand. b. it has a perfectly elastic supply. c. it has a perfectly inelastic supply. d. it has a perfectly inelastic demand. e. it has no demand.
The aggregate demand curve
a. is identical to the AE curve. b. shows the amounts of real output that will be demanded at various price levels. c. shows the amount of real output that will be demanded at various levels of income. d. shows the amount of income that will be earned at various price levels.
When personal income is greater than national income,
a. personal income taxes are less than transfer payments b. personal income taxes are less than Social Security contributions c. income that is earned but not received is greater than income that is received but not earned d. income that is received but not earned is greater than income that is earned but not received e. there is no difference between income that is earned and not received and income that is received and not earned
If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the
a. actual burden of this tax falls mostly on consumers. b. actual burden of this tax falls mostly on manufacturers. c. actual burden of the tax would be shared equally by producers and consumers. d. tax would clearly be a progressive tax.