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Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
Other taxes are typically used to cover general spending, but funds from corrective taxes can only be used to alleviate pollution
Corrective taxes bring the allocation of resources closer to the social optimum, and thus improve economic efficiency
Other taxes get passed on from businesses to consumers, whereas corrective taxes do not
Correct taxes alter incentives, whereas other taxes typically do not.
Economic growth has slowed in the last quarter of the year to 0.6% from the previous third quarter growth rate of 4.9%. The economy lost 12,000 jobs in the last month of the previous year while shedding 80,000 jobs during the months of January and Fe..
Illustrate what factor stores have in common behind their decline. Elucidate how would you conclude which were important also which were not.
Explain how is the activity reflected on the balance on current (BCA) account different from the activity reflected on the capital and financial accounts (BFA).
The consumption of both x1 also x2. Label income also substitution effects for both goods. Illustrate what is the implication of product differentiation in defining market structure.
A December 2007 issue of The Economist contained the following quote in an article about Germany: "The government has just chopped the payroll tax that finances unemployment insurance, which should encourage employment." Comment on this statement,..
According (the semi-strong form of) the efficient market hypothesis, the price of an asset should reflect all publicly available information about the 'fundamental value' of that asset. What academic theories (i.e. published or in working papers) hav..
If it decrease the percentage of its output devoted to capital goods, then its rate of growth will tend to increase. Its production-possibilities curve will shift to the left or its rate of growth will tend to decline.
If it had doubled its land as well as labor, production would have been 325000 bushels. Does it have increasing, decreasing or constant returns to scale.
use the shifts of appropriate curves to show why the combination of rising incomes plus price ceilings produced shortages and lines. Finally, show what happened when price controls were removed.
The market demand and supply function for VCR movie rentals are: QD= 10 - 0.04p and QS 3.8P = 4. Calculate the equilibrium quantity and price.
q.an entrepreneur wants to undertake a project which generates future revenue of 34 or 9 and requires an initial cost
q.the central bank of the fictitious country omega raises bank reserves by 100. what effect will the increase in bank
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