Which of the following statements is correct?
a. Government should tax goods with either positive or negative externalities.
b. Government should tax goods with negative externalities and subsidize goods with positive externalities.
c. Government should subsidize goods with either positive or negative externalities.
d. Government should tax goods with positive externalities and subsidize goods with negative externalities.
b
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An increase in supply is caused by:
A) an increase in resource prices. B) suppliers' expectations of higher prices in the future. C) an increase in the price of a good using the same resources. D) a decrease in the price of a good using the same resources.
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?
A) 50 dollars B) 60 dollars C) 70 dollars D) 62.5 dollars E) 40 British pounds