In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant.
b. people's willingness to pay for a cleaner environment.
c. the expense of installing new "green" equipment.
d. the number of free riders in the industry.
a
Economics
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The values on the axes of the long-run aggregate supply diagram are
A) real GDP and interest rates. B) real GDP per year and the price level. C) nominal GDP and the price level. D) real GDP and nominal GDP.
Economics
If UIP holds, the interest rate at home is 4%, and the exchange rate is expected to depreciate by 3%, then the foreign interest rate is:
a. 1% b. 3% c. 7% d. 12%
Economics