Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, we can expect:
A. the price of rubber not to change.
B. the price of rubber to increase.
C. the quantity of rubber demanded to increase.
D. no change in the quantity of rubber demanded.
Answer: B
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What will be an ideal response?
The following are possible examples of price discrimination except
A) prices in export markets are lower than for identical products in the domestic market. B) senior citizens pay lower fares on public transportation than younger people at the same time. C) a product sells at a higher price at location A than at location B, because transportation costs are higher from the factory to A. D) subscription prices for a professional journal are higher when bought by a library than when bought by an individual.
Why does the opportunity cost of your college education include money you could have earned working instead of going to college?
A. Because most people who don't go to college do not work. B. Because the best alternative use of your time is working. C. Because people should be productive members of society. D. Because working a full time job takes as much time as going to college.
The demand for money curve will shift to the left when
a) the interest rate increases b) the price level increases c) aggregate output decreases d) the price of bonds is expected to decrease e) all of the above will shift the money demand curve to the left