To correct for the social impact of pollution, the government should levy a per-unit tax
A) that is the same for all polluters regardless of their locations or sizes.
B) according to the economic damage of the pollution.
C) according to the business activity of the polluter.
D) only to those polluters that can afford to pay for the tax.
B
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Which of the following is an example of a producer taking advantage of economies of scope?
a. A farmer buys more land so he can produce more soybeans. b. GM closes a Chevy truck plant in response to a decline in the demand for trucks. c. Disney World stays open later to serve more customers per day. d. A dairy farmer produces cow's milk and butter. e. A mouthwash firm expands production by improving management efficiency.
If the foreign exchange rate for 1 Hungarian forint is 0.5 cent, then
A) a dinner priced at 400 forints will cost $20. B) a wine that sells for 600 forints will cost $3,000. C) a Big Mac hamburger priced at 50 forints will cost $1. D) a hotel room renting for 40,000 forints will cost $200.