Author Question: Refer to above figure in which negative externality existed. The government imposes a 1.00 pollution ... (Read 39 times)

james · **on:** Jun 29, 2018

Refer to above figure in which negative externality existed. The government imposes a 1.00 pollution tax on the producer. Supply shifts leftward.

A) This tax will be shifted entirely to the consumer.
B) This tax will be borne entirely by the producer.
C) The amount of the tax shifted to the consumer depends on the consumer's reaction.
D) The tax will be divided into equal amounts between consumer and producer.

Question 2

A graphical representation which shows the trade-off that occurs when more of one output is obtained at the sacrifice of another is called

A) a Laffer Curve.
B) a production possibilities curve.
C) a bell curve.
D) a supply curve.