When the government levies a tax on a good equal to the external cost associated with the
Question:
When the government levies a tax on a good equal to the external cost associated with the good’s production, it _________ the price paid by consumers and makes the market outcome _________ efficient.
a. increases; more
b. increases; less
c. decreases; more
d. decreases; less
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Multiple Choice Questions 1. Which of the following is an example of a positive externality? a. Bob mows Hillary's lawn and is paid $100 for performing the service. b. While mowing the lawn, Bob's...
-
Multiple Choice Questions 1. A tax on a good has a deadweight loss if a. The reduction in consumer and producer surplus is greater than the tax revenue. b. The tax revenue is greater than the...
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
Consider a situation with two firms that have marginal abatement cost functions The marginal damage function is again equal to D'(E)=d.E. Assume the regulator applies Monteros mechanism. Determine...
-
A solar cell, 3.0cm square, has and output of 350mA at 0.80V when exposed to full sunlight. A solar panel that delivers close to 1.0 A of current at an emf of 120V to an external load is needed. How...
-
Fetzer Company declared a $ 0 . 1 0 per share cash dividend. The company has 3 0 0 , 0 0 0 shares authorized, 2 8 5 , 0 0 0 shares issued, and 1 2 , 0 0 0 shares in treasury stock. The journal entry...
-
Andrea Kent has won \($600,000.00\) in a state lottery. The state will pay her the prize in 30 annual payments of \($20,000.00.\) Instructions: Assuming a 10% rate of return, calculate the present...
-
Establishing price for an outsourcing decision Lunn Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable...
-
The Woods Company and the Koepka Company have both announced IPOS at $59 per share. One of these is undervalued by $18.50, and the other is overvalued by $9.00, but you have no way of knowing which...
-
Which of the following statements about corrective taxes is generally NOT true? a. They increase what consumers pay for the good. b. They raise government revenue. c. They reduce the quantity sold in...
-
If the production of a good yields a negative externality, the social-cost curve lies _________ the supply curve, and the socially optimal quantity is _________ than the equilibrium quantity. a....
-
On April 1, 2017, Bullen Company transferred machinery used in its business to Eaton Inc. in exchange for Eaton common stock. Both Bullen and Eaton use the calendar year for tax purposes. Bullen's...
-
Sometimes companies will purchase a booth at a trade show in order to have their sales people discuss what their products or services can do for these potential customers. What this is an example of ?
-
Which regulatory entity establishes and interprets the rules that govern the over-the-counter markets?
-
How can a manufacturing firm best utilize computer technology to help run the supply chain?
-
Consider a stock currently (S 0 ) priced at SAR 80. One period later it can go up(u) by 25% or go down(d) by 20%. The risk-free rate is 7 percent. Calculate the current/theoretical value of the...
-
Define and thoroughly explain what the Trade Dispute Act is and its purpose.
-
The statement of cash flows for BargainPurchase, a retailer, showed a net cash inflow from operations of $4,125, a net cash outflow for investing of $6,195, and a net cash inflow for financing of...
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
Suppose that the government reduces spending on highway construction by $10 billion. Which way does the aggregate-demand curve shift? Explain why the shift might be larger than $10 billion. Explain...
-
Suppose a wave of negative animal spirits overruns the economy, and people become pessimistic about the future. What happens to aggregate demand? If the Fed wants to stabilize aggregate demand, how...
-
What is the theory of liquidity preference? How does it help explain the downward slope of the aggregate-demand curve?
-
Kate owns 25 real estate rental properties that she manages herself. She averages about 20 hours a week taking care of her properties. This year, the rental properties produced a loss of $35,000....
-
Consider the following linear programming problem: Max x1+2x2 s.t. x1+x2 <3 x12x20 x21 x1, x20 a. Identify the feasible region. (12 points) b. Are any of the constraints redundant? If yes, then...
-
On December 31, 2023, Tyler Partnership reported a $68,000 loss on its books. The items included in the loss computation were $21,000 in sales revenue, $15,000 in dividends, $21,000 in cost of goods...
Study smarter with the SolutionInn App