Under Obamacare, residents who do not have health insurance that meets certain basic requirements are subject to a tax penalty

Consider a situation in which a factory emits high levels of air pollution and the factory is not liable for the damages its pollution causes. According to the Coase theorem, government action is ________ to achieve an ________ amount of pollution

A) necessary; equitable B) not necessary; equitable C) necessary; efficient D) not necessary; efficient.

If the income tax rate is 20 percent and the tax rate on consumption expenditure is 15 percent, then the tax wedge is

A) 2 percent. B) 35 percent. C) 300 percent. D) 5 percent. E) None of the above answers is correct.