To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if
A) the administrative costs are high.
B) the cost of ascertaining the actual economic costs are relatively small.
C) the economic damages are zero.
D) the economic damages associated with the pollution are different across different locations.
A
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The discount rate is the rate of interest charged when banks lend excess reserves to one another.
a. true b. false
Why is a typical person likely to gather more information when buying a new car than when voting for a member of Congress?
A) because it is less costly to acquire information about consumer items than it is about political candidates B) because a person's preferences are more likely to be met with little effort in the political sphere but this is not the case when buying a car in the private marketplace C) because buying a new car affects a person more immediately and personally compared to voting for a member of Congress; in the latter, a person's vote is only one of many voters and therefore, not likely to have a large impact on the outcome D) because the effects of buying a car are long term while a member of Congress has a relatively short tenure