Which policy is more effective when handling externalities: Cap-and-trade or emissions fee?
What will be an ideal response?
Although answers may vary, the reader should take into account how responsive each policy is to inflation. In addition, there should be some mention of the responsiveness to cost changes and uncertainty. Therefore when marginal social benefits are inelastic and costs are higher than expected, cap-and-trade achieves too much reduction and an emissions fee achieves too little reduction.
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A tax structure is progressive as long as a person who has more income pays
A. the same rate of tax than someone who has less income. B. a higher rate of tax than someone who has less income. C. the same tax than someone who has less income. D. more tax than someone who has less income.
A monopoly's marginal revenue is equal to the market price of its product
Indicate whether the statement is true or false
Both tariffs and quotas will restrict supplies coming into the country from abroad
a. True b. False Indicate whether the statement is true or false
Shianne works in a government budgeting office. Her supervisor has ordered her to create a sample budget that makes cuts to discretionary spending. Where can she make cuts?
a. Medicare
b. disability programs for workers
c. Social Security
d. secretarial salaries