A. Add indirect taxes
B. Subtract subsidies
C. Deduct indirect taxes and subsidies
D. Deduct indirect taxes and add subsidies
A. Prices to rise and output to rise
B. Price to fall and output to remain unchanged
C. Prices to fall and output to fall
D. prices to rise and output to remain unchanged
A. it assumes that firms believe that their rivals will not respond to any price change they initiate
B. it fails to explain how a firm arrived at its price and output decision initially
C. The model cannot be tested empirically.
D. Real-world pricing strategies are more simple than those assumed in this model
A. externalities
B. the free-rider problem
C. a and b
D. a and c
A. 60.4%
B. 55.5%
C. 65.5%
D. 68.4%
A. additional investment funds made available from overseas
B. lack of investor confidence in U.S fiscal policy
C. market expectations of rising inflation in the United States
D. American tourists overseas finding costs increasing
A. All of these answers are true
B. Pigouvian taxes and tradable pollution permits create an efficient market for pollution.
C. Tradable pollution permits efficiently reduce pollution only if they are initially distributed to the firms that can regulator pollution at the lowest cost.
D. To set the quantity of pollution with tradable pollution permits, the regulator must know everything about the demand for pollution rights.
E. Pigovian taxes are more likely to reduce pollution to a targeted amount than tradable pollution permits.