Correcting a market with an externality through taxation is ________ correcting it through a quota.
A. less efficient than
B. more efficient than
C. just as efficient as
D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
Answer: B
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Technological advancements cause structural unemployment. However, they help in:
a. lowering the rate of interest in the economy. b. increasing the price level in the economy and hence make business more profitable for the firms. c. improving living standards by giving consumers a greater variety of goods at lower costs. d. raising government's tax revenue. e. raising the aggregate income in the economy.
In the prisoners' dilemma game, confessing is a dominant strategy for each of the two prisoners
a. True b. False Indicate whether the statement is true or false