The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost. The government imposes the pollution tax shown in the above figure. What quantity is produced after the pollution tax is imposed?
A) zero pounds
B) 80 million pounds
C) 160 million pounds
D) more than 160 million pounds
E) more than 80 million pounds and less than 160 million pounds
B
Economics
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If the factor price equalization theorem is true then, eventually, U.S. wages will fall to the level found today in the least developed countries of the world
Indicate whether the statement is true or false
Economics
According to the classical model, changes in aggregate demand are driven by
a. changes in taxes. b. changes in borrowing and lending. c. changes in fiscal policy. d. demand curve to the left and increases the price level.
Economics