A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
a. The pollution will be created by those least willing and able to pay the damages.
b. The pollution will be created by those most willing and able to pay for the right to pollute.
c. The funds collected by the government will be enough to compensate any individuals harmed by the pollution.
d. Pollution will increase from zero to 1,000 units per day.
b
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If a person is concerned that an additional $1,000 income will move him/her into a new tax bracket, that person is worried about the:
a. proportional rate. b. regressive tax rate. c. marginal tax rate. d. flat tax rate.
A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity
a. True b. False Indicate whether the statement is true or false