To correct for negative externalities, the government
A) should allow the price system do the correction.
B) can impose a tax.
C) can provide a subsidy to consumers.
D) should create a public good.
Answer: B
Economics
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The gains from free trade are enjoyed by a ________ number of people and the costs of free trade are imposed by ________ number of people
A) small; large B) large; small C) small; small D) large; large
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Refer to the above figure. Which panel is consistent with the Laffer curve?
A) Panel A B) Panel B C) Panel C D) Panel D
Economics