Which of the following is an example of a Pigovian tax?
A) a tax imposed on a utility that internalizes the cost of externalities caused by the utility
B) payments by utilities to obtain tradable emission allowances
C) payments for licenses to pollute
D) a payroll tax
A
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If there is no Ricardo-Barro effect, when the government runs a budget surplus, it
A) contributes to financing investment. B) competes with businesses for private saving. C) shifts the demand for loanable funds curve rightward. D) shifts the supply of loanable funds curve leftward. E) shifts the demand for loanable funds curve leftward.
Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14
A) consumer surplus will increase from $80 to $95. B) consumer surplus increases from $32 to $53. C) Larry and Moe will receive more consumer surplus than Curly. D) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.