Refer to the scenario above. Suppose the decision to levy a tax on emission of greenhouse gases costs 500 utils in present value and that the discount weight attached to the future benefit is 1/17
In this case, the net benefit earned by the people is: A) -300 utils.
B) -441.18 utils.
C) 333.65 utils.
D) 420 utils.
B
You might also like to view...
If a consumer's total expenditure on a good does not vary with price, then that consumer's demand curve is unit elastic over that range of prices
a. True b. False Indicate whether the statement is true or false
What condition must be met in order for total spending to equal total output?
a. The sum of saving and government purchases must equal the sum of planned investment and net taxes. b. The sum of saving and net taxes must equal the sum of planned investment and government purchases. c. The sum of saving and planned investment must equal the sum of government purchases and net taxes. d. Saving must equal net taxes. e. The sum of saving and net taxes must equal planned investment minus government purchases.