Which of the following statements is correct about a market in which pollution is emitted?
a. Both corrective taxes and pollution permits internalize the externality of pollution.
b. Corrective taxes internalize the externality of pollution, but pollution permits do not internalize that externality.
c. Corrective taxes fail to internalize the externality of pollution, but corrective taxes internalize that externality.
d. Neither corrective taxes nor pollution permits internalize the externality of pollution.
a
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"If Mexico is currently operating at a point inside its production possibilities frontier, then there are unemployed resources in Mexico." Is this statement true or false? Briefly explain your answer
What will be an ideal response?
Why would macroeconomists rate economic performance in Speed-Nation superior to that in Stag-Nation? Speed-Nation has
A) milder business cycles. B) more volatile business cycles. C) faster economic growth. D) larger real GDP gaps. E) smaller real GDP gaps.