Question: 1 Figure 3. On the graph, Q represents the quantity of foam and P represents the price of foam. Refer to Figure 3. If the government imposed a corrective tax that successfully moved the market from the market equilibrium to the social optimum, then tax revenue for the government would amount to (do not use $ sign) Guess: 10,000 (with margin: 0) Question: 2 Which of the following statements is correct? a. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate. b. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a higher cost. c. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost. d. Corrective taxes distort economic incentives. Question 3: According to the Coase theorem, externalities can be internalized when transactions costs are zero through: a. assigning property rights to resource use but outlawing their exchange. b. assignment of property rights to use resources and allowing free exchange of assigned property rights. c. corrective taxes and subsidies. d. effluent fees. Thank you for your support and help Education Agent!
Economics: Public Economics
Question: 1
Figure 3. On the graph, Q represents the quantity of foam and P represents the price of foam.
Refer to Figure 3. If the government imposed a corrective tax that successfully moved the market from the
Guess: 10,000 (with margin: 0)
Question: 2
Which of the following statements is correct?
a. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate.
b. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a higher cost.
c. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost.
d. Corrective taxes distort economic incentives.
Question 3:
According to the Coase theorem, externalities can be internalized when transactions costs are zero through:
a. assigning property rights to resource use but outlawing their exchange.
b. assignment of property rights to use resources and allowing free exchange of assigned property rights.
c. corrective taxes and subsidies.
d. effluent fees.
Thank you for your support and help Education Agent!
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