The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax
What is the tax per vehicle mile that will achieve the efficient outcome? A) $2
B) $4
C) $6
D) $8
C
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Other things remaining the same, which of the following is likely to happen if an industry introduces labor-saving technology in production?
A) There will be a decrease in both the wage rate and the employment levels in the industry. B) There will be a rise in both the wage rate and the employment levels in the industry. C) There will be a rise in the wage rate and a decrease in the employment levels in the industry. D) There will be a decrease in the wage rate and a rise in the employment levels in the industry.
From 1998 to 2010, the cost of electricity produced with nuclear power has ________ and the cost of electricity produced with solar power has ________.
A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased