Give an appropriate remedy for correcting excessive pollution and note any difficulties in implementing it
A tax on the polluting activity will help reduce output to the point where P = marginal social cost. Difficulties include the inability to measure the cost of the externality in monetary terms and the wide diffusion of the cost over many individuals.
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Other things equal, the supply of labor will be lower to a job that
a. offers more prestige b. offers valuable on-the-job training c. requires advanced skills or education d. provides a climate-controlled work environment e. allows for flexible work schedules
Which of the following is not considered as a unilateral transfer?
a. income earned from foreign investments b. foreign aid c. personal gifts to friends or family abroad d. institutional charitable donations e. government transfers to foreign residents