Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good.
2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good.
3. Social costs are equal to the costs imposed on others.
4. Social costs are felt by consumers but not by manufacturers.
5. All cars contribute positively to social gains.
True
False
False
False
False
You might also like to view...
Prices serve as a key means of communication between buyers and sellers
Indicate whether the statement is true or false
Long-run economic profits are most likely to be earned in
A) perfect competition and oligopoly. B) perfect competition and monopoly. C) monopoly and oligopoly. D) oligopoly and monopolistic competition. E) perfect competition and monopolistic competition.