Answer the following statement(s) true (T) or false (F)
1. A Pigouvian tax is a charge on a good whose production generates a negative externality, such that the charge isequal to the MEC at the competitive output level.
2. In the single-polluter case, a firm faced with an emission charge for pollution implemented as a marginal tax (MT) will abate as long as MAC
4. If firms abate to the point where each firm’s MAC equals the marginal tax, an efficient solution will result.
5. Of all the market-based policy instruments used to combat environmental damage, the pollution charge is the most commonly used worldwide.
1. False
2. True
3. True
4. False
5. True
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Refer to the figure above. What is the total surplus after Lithasia opens up to free trade?
A) $15 B) $25 C) $27 D) $35
A demand curve is a graph:
A. that shows the quantities demanded by consumers of a particular good or service at one price. B. that shows the quantities demanded by consumers of a particular good or service at various incomes. C. depicting various price-quantity combinations of a good for a seller. D. that visually displays the demand schedule.
The official unemployment rate can be criticized for both understating and overstating the true number of unemployed
a. True b. False Indicate whether the statement is true or false
Welfare benefits reduce the need to work and result in a shift in the
A. Labor supply curve to the left. B. Labor demand curve to the left. C. Labor supply curve to the right. D. Labor demand curve to the right.