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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.
A company is manufacturing output in a competitive market, where demand is P = 24 - 2Q. Describe the nature of the market failure and derive Pareto optimal level of output.
a television show called extreme couponning features people who go to extreme lengths to collect and use discount
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If the government knew the cost of reduction for each firm, what reductions would it impose to reach its overall goal What would be the cost to each firm and the total cost to the firms together
Completion of import documents needed for entry into the U.S. to include the tariff classification number and impacted duty rates or fees. Potential dumping issues (i.e. predatory pricing with knockoff products: when manufacturers export a product..
As an aid to the establishment of personnel requirements, the director of a hospital wishes to estimate the mean number of people who are admitted to the emergency room during a 24-hour period.
A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $30.00 per unit for all successive units. Does price exceed aver..
Determine the effective interest rate that Chuck would receive when the bond matures, if it has paid dividends as scheduled.
in a dramatic episode discussed in chapter 4 the money supply fell 28 percent from 1929 to 1933 which some economists
how can the calculate the opportunity cost for the following questiontom can produce either 5 kites and 3 jigsaw
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Catfish farming in Louisiana is a perfect competition market. Hence, customers of catfish are getting their catfish at the minimum cost per unit of manufacturing catfish, and they are very happy.
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