What is a Pigovian tax? What happens to deadweight loss when a Pigovian tax is implemented?
What will be an ideal response?
A Pigovian tax is a government tax intended to bring about an efficient level of output in the presence of externalities. A Pigovian tax eliminates deadweight loss.
Economics
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If opening an economy up to trade always benefits both trading partners, why is free trade controversial?
What will be an ideal response?
Economics
The minimum amount that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested, is referred to as
A) the explicit costs of production. B) net income. C) net worth. D) a normal rate of return.
Economics