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Question
The deadweight loss from a tax is likely to be less with a good that has
a. few complements.
b. many substitutes.
c. few substitutes.
d. an elastic demand.
e. an elastic supply.
Answer
This answer is hidden. It contains 59 characters.
Related questions
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The city decides to offer a subsidy to each homeowners association that plants more flowers in their common areas. In the market for flowers, this will cause the
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b. supply curve to shift to the right.
c. demand curve to shift to the left.
d. demand curve to shift to the right.
e. the supply curve to shift to the left and the demand curve to shift to the right.
Q:
The market works efficiently in the absence of externalities if the good is
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The tragedy of the commons occurs for goods that area. rival and excludable. b. rival and nonexcludable. c. nonrival and nonexcludable.d. nonrival and excludable.e. never produced by the government.
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The quantity produced of a common-resource good is likely to deviate from the socially optimal quantity because
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If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in a(n)
a. black market for a market price that is higher.
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A market where exchanges occur despite price regulations is called a(n) ________ market.a. hidden b. noncompetitive c. blackd. prohibitede. outlaw
Q:
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a. will never be able to negotiate to correct a negative externality.
b. can always negotiate to correct a negative externality.
c. can negotiate to correct a negative externality if there are no barriers to negotiation.
d. can negotiate to correct a negative externality if the government passes a law allowing them to do so.
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Q:
External benefits arise from the actions of
a. firms.
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c. firms and consumers.
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Q:
What makes an externality positive rather than negative?
a. The deadweight loss is greater than zero, not less.
b. The socially optimal quantity exchanged is less, not greater, than at market equilibrium.
c. The externality affects the demand curve rather than the supply curve.
d. The externality benefits third parties rather than harming them.
e. The externality becomes internalized without government action.
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Consider the accompanying figure to answer the following questions.When a positive externality exists, which point best identifies the social optimum?a. A b. B c. Cd. De. either A or D
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Q:
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