Refer to Figure 5-9. Let's suppose the government imposes a tax of $50 per unit of toilet paper to bring about the efficient level of production. What happens to the market price of toilet paper?
A) It rises by more than $50 per unit.
B) It rises by $50 per unit.
C) It rises by less than $50 per unit.
D) It remains the same because the tax is imposed on producers who create the externality.
C
Economics
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When an insurance company makes a direct loan to a firm, the loan is known as
A) a private placement. B) a commercial paper. C) an account receivable. D) an account payable.
Economics
The Ricardian notion that of diminishing returns implies that
a. as more input is used more output will be made. b. as more input is used less output will be made. c. as more input is used the increase in output will increase. d. as more input is used the increase in output will decrease.
Economics