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Author Question: Education creates positive externalities. Indicate whether the statement is true or ... (Read 28 times)

imowrer

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  • Posts: 514
on: Jun 29, 2018
Education creates positive externalities.
 
  Indicate whether the statement is true or false

Question 2

Sammy has a drone that he values at 1,500. Dean values the same drone at 2,000. Sammy decides to sell the drone to Dean for 1,800. If the government imposes a 350 tax on the sale of drones,
 
  A) Sammy and Dean would not be able to complete the transaction.
  B) Sammy and Dean would still be able to complete the transaction.
  C) the tax would cause a deadweight loss of 500.
  D) Both A and C are correct.


tmlewis4706

  • Sr. Member
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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

D


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