Why do you suppose that taxes are often used in place of effluent charges in order to combat pollution?
What will be an ideal response?
Since pollution is often difficult to measure imposing taxes on the amount of production is a way of making it easier since the assumption is that the amount of pollution is typically proportional to production levels.
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Which of the following statements is true?
a. The money price is usually the same as the time price for most consumers. b. The money price of a good is always greater than the time price. c. The money price is always greater for high-wage earners than for low-wage earners. d. The time price is usually less for low-wage earners than for high-wage earners. e. The time price of a good is directly proportional to the money price.
Since women earn less on average than men, we would expect that the substitution effect of a wage change would be more likely to dominate for women and the income effect would be more likely to dominate for men
a. True b. False Indicate whether the statement is true or false