The major difficulty with using a tax on pollution instead of a fixed percentage reduction regulation is:
A. that it only works in theory.
B. that firms would not pay the tax.
C. establishing the optimal size of the tax.
D. that it would cause prices to rise.
Answer: C
Economics
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The assumption of imperfect information is critical to
A) the old Keynesian and all New Classical approaches. B) all New Classical approaches. C) the Friedman, Phelps, and Lucas New Classical approaches. D) the real business cycle approach.
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Until 1950, the Social Security program spent ______ of its assets every year
a. less than 10 percent b. between 10 and 20 percent c. between 20 and 30 percent d. over 30 percent
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