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Teacher resources and professional development across the curriculum
Teacher professional development and classroom resources across the curriculum
To define “public goods,” to show how a perfectly competitive market will not automatically result in the production of the proper amount of such goods, to illustrate the hidden cost of taxation, and to show the problems of determining exactly what and how much the government should produce.
Weavemore Textiles is dumping pollutants into the Green River, causing problems with the water supply for the Hide-Away Hotel, four miles downstream. Thus far, Weavemore has taken no steps to correct the problem. The MOST LIKELY way in which the government might deal with this situation would be to...
impose a tax on Weavemore Textiles.NEXT QUESTION
Look at the following graph showing the demand and supply curves for a competitive industry. If D1 is the demand curve reflecting externalities in this industry, then we can assume that...
The social benefits from production exceed those measured by the industry’s demand curve. The first option is incorrect because though subsidizing could shift the demand curve to the right, this illustration only reflects the externalities — in other words, what the socially optimal demand should be, given the benefits of the production.NEXT QUESTION
The experience of Proposition 13 in 1978 tends to illustrate the fact that during the late 1970s most California voters...
felt that local government services were no longer worth the tax costs.NEXT QUESTION
Assume that a sales tax is imposed on a product represented by the diagram below. The amount of the tax is best illustrated by the letters...
DF. This is the vertical distance between the two supply curves.NEXT QUESTION
The amount of the tax shifted onto the consumer is best illustrated by the letters...
DE. This is the difference in equilibrium prices under the pre- and post-tax supply curves.NEXT QUESTION
The benefit principle of taxation states that...
people who receive more from a government service should pay more to support it.RESTART QUIZ