A pollution tax that is exactly equal to marginal external cost will shift the market supply curve to the social-cost supply curve. This tax will thus correct the market inefficiency due to negative externalities by causing price to reflect the full marginal cost of production

Non-activists believe that postwar instability is primarily the result of

A) erratic growth of private investment. B) uneven changes in real government expenditures. C) uneven changes in private consumption of durables. D) A and C are both correct.

Sales agents being paid a fixed commission on the sales are more likely to

a. Tell their bosses that they need to price higher to make sales b. Tell their bosses that they need to price lower to make sales c. Not say anything to their boss d. None of the above