The purpose of a Clarke tax is to
a. give people an incentive to truthfully reveal their preferences for a public good.
b. raise enough revenue to pay for a public good.
c. give producers an incentive to supply nonrivalrous public goods in socially efficient quantities.
d. prevent the dissipation of rents that would occur with a nonexcludable public good.
a. give people an incentive to truthfully reveal their preferences for a public good.
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Belgium, according to economists, is in a recession when its
a. real GDP declines for at least three months b. real GDP declines for at least nine months c. nominal GDP declines for at least nine months d. real GDP declines for at least six months e. nominal GDP declines for at least six months
Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A. there will be an excess supply of labor. B. there will be a surplus of jobs. C. antitrust laws become effective. D. there will be downward pressure on the wage rate until equilibrium is established.