The greater the magnitude of the external costs of production,
a. The larger is the deadweight loss from overproduction
b. The greater would be the optimal pollution tax.
c. The further the private market solution ignoring those costs would deviate from the socially efficient level of output.
d. All of the above are true.
c
Economics
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A tax is more likely to promote economic equality if it is
a. regressive. b. proportional. c. indirect. d. progressive.
Economics
If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
A. 2/3. B. 3/2. C. 2 D. 3 E. 8
Economics