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Achieving lower pollution Suppose the government decides to raise the gasoline tax as a way to reduce air pollution and traffic congestion to their optimal levels. Which of the following describes why corrective taxes, such as the gasoline tax, are unlike most other taxes? A. Other taxes are typically used to cover general spending, but funds from corrective taxes can be used only to alleviate pollution. B. Corrective taxes alter incentives, whereas other taxes typically do not. C. Other taxes get passed on from businesses to consumers, whereas corrective taxes do not. D. Corrective taxes bring the allocation of resources closer to the social optimum and, thus, improve economic efficiency.
Which of the following is not part of the underwriting process
A firm can determine how many resource units to acquire by comparing Marginal Revenue Product and Marginal Factor Cost, then continuing to acquire another unit so long as its MRP exceeds, or at least is no worse than, its MFC.
What is the difference between intra-industry and inter-industry trade? Generally, trade in primary goods involves intra- or inter-industry trade?
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..
Many companies choose to incorporate in the tiny state of Delaware because __________.
What do you think are the three most important purposes of the AICPA Code of Professional Conduct?
Discuss the power of compound interest and why compounding makes it important for people to save and invest for retirement early in their working life rather than waiting until they are close to retirement.
q. a draw the supply and demand for apartments. assume in this market all apartments are identical so there is only one
Decide whether each of the following statements is a normative statement or a positive statement, then explain your answer. The gasoline tax is projected to yield $10 million in tax revenue next year. If the gasoline tax was raised by 10 cents per ga..
An investor is considering the construction of a new marina on the Detroit river at a cost of $68m. M&O costs will average $80,000 per year for the first five years, and rise to $100,000 per year thereafter. A major overhaul costing $12m will be requ..
Would the monopolist charge a higher price in market 1 or in market 2? Why? Assume the price charged in market 2 was $10, what would be the price charged in market 1?
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