Which one of the following statements is false?
a. A Pigouvian tax is used to internalize pollution costs
b. Transactions costs could reduce the potential for parties in a dispute to reach an efficient agreement
c. The assignment of initial property rights affects the equity of a situation
d. The "optimal" level of pollution is unlikely to be zero
e. The "optimal" level of pollution maximizes industry profits
Ans: e. The "optimal" level of pollution maximizes industry profits
Economics
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The marginal propensity to consume is
A. consumption times income. B. the fraction of a change in income that is consumed or spent. C. the amount of consumption at a specific level of income. D. a change in saving divided by a change in consumption.
Economics
Efficiency factor:
What will be an ideal response?
Economics