In the presence of a negative externality, a specific tax can achieve the social optimum because
A) output is reduced to zero as a result.
B) it internalizes the external cost.
C) it directly charges the producer for polluting.
D) the price of the good rises by the full amount of the tax.
B
Economics
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Since 1970, the distribution of income in the United States
A) generally has become more equal. B) generally has become less equal. C) has become more equal than the distribution of wealth. D) has shown no discernible trend.
Economics
When prices are rising, which of the following will be true?
A) The real interest rate will be lower than the nominal interest rate. B) The real interest rate will be higher than the nominal interest rate. C) The real interest rate will be negative. D) The nominal interest rate will be negative.
Economics