Consider the following statements when answering this question I. ...

[kamilo84]

Consider the following statements when answering this question I. It is impossible to shift taxes from producers to consumers without hurting the latter. II. Only polluters pay (through production taxes) for the environmental damage they cause.
 
  A) I and II are true.
  B) I is true, and II is false.
  C) I is false, and II is true.
  D) I and II are false.

Question 2

Suppose MRS is not the same across all consumers. In this case, the economic outcome is not fully efficient because:
 
  A) exchange is inefficient.
  B) the use of inputs in production is inefficient.
  C) the mix of outputs in inefficient.
  D) none of the above

[kkenney]

Answer to Question 1

D

Answer to Question 2

A

[kamilo84]

Excellent

[carlsona147]

Gracias!