The above figure shows the market for steel ingots. If the market is competitive, then to achieve the socially optimal level of pollution, the government can
A) outlaw the production of steel.
B) institute a specific tax of $25.
C) institute a specific tax of $50.
D) institute a specific tax equal to area b.
C
Economics
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At the point where actual inflation is equal to expected inflation
A) the unemployment rate is zero. B) there is no short-run Phillips curve, as this situation only occurs in the long run. C) the short-run Phillips curve intersects the long-run Phillips curve. D) the short-run Phillips curve is the same as the long-run Phillips curve.
Economics
Over the post-war era, the gaps between industrial countries' living standards
A) disappeared. B) stayed the same. C) increased. D) decreased. E) fluctuated.
Economics