There are two coal-burning electrical utilities—one in tiny, rural Wanunu, Montana, and another in metropolitan Detroit, Michigan—and each produces the same amount of pollution per unit of output
If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be A) the same in each city.
B) higher in Wanunu than in Detroit.
C) higher in Detroit than in Wanunu.
D) less than zero in each city.
C
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According to the life-cycle hypothesis, as consumers get older ________
A) the marginal propensity to consume out of wealth and income rise B) the marginal propensity to consume out of wealth falls and the marginal propensity to consume out of income rises C) the marginal propensity to consume out of wealth rises and the marginal propensity to consume out of income falls D) the marginal propensity to consume out of wealth and income fall
Third parties generally cannot win elections under a majority vote system because _____
a. the original two parties make it illegal for third parties to exist b. the original two parties are able to use the power of incumbency to raise the large amount of money necessary to run a winnable election c. the original two parties will have already split the voting population by placing their platforms on either side of the median voter d. the original two parties have already "locked-in" most eligible voters as members of their parties