An effluent fee is an example of
A) a government policy to correct for an external benefit.
B) a government policy to promote the production of a product with an external cost.
C) a government policy to promote the production of a product with an external benefit.
D) a government policy to correct for an external cost.
Answer: D
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Suppose that the demand for labor decreases due to an economic downturn, and union workers are in the first year of a 3-year labor contract
With respect to these union laborers, the economic downturn will most likely ________ the nominal wage and ________ the quantity of labor hired. A) decrease; not change B) decrease; decrease C) not change; decrease D) not change; not change
Which statement is false?
A. Over the last three decades our money supply grew most years, but at widely varying rates. B. The U.S. dollar is based on Spanish currency. C. The interest rate on business loans is lower than the interest rate that banks pay their depositors. D. The distinction between commercial banks and other banks is becoming blurred.