When producing a good creates pollution, an external cost, and the government imposes a tax equal to the marginal external cost, then
A) the amount of output moves farther away from the efficient amount.
B) transaction costs will be high.
C) the efficient amount of the good will be produced.
D) property rights must have already been established.
C
Economics
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Which of the following has the largest impact on short-run movements in exchange rates?
A) growth rate of exports B) growth rate of imports C) investment opportunities D) changes in the trade deficit
Economics
Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula) is:
A. 0.75. B. 0.6. C. 0.25. D. 20.
Economics