A policy maker is unsure of the true marginal damages associated with a good, but they know that the marginal externality is constant and somewhere between $10 and $50 per unit, so the regulator imposes a tax of $35.Even though the tax rate might be wrong, the regulator knows that imposing the tax raises social welfare compared to having no tax at all.
O True
O False

In a macroeconomic context, what are implicit liabilities? money owed to people possessing government issued bonds. the amount of money that firms collectively owe to shareholders. money that the government has promised to pay in the future. payments that the federal government undertakes only during periods of recession. which of the choices is a significant implicit liability in the united states? military spending education spending national science foundation spending social security

Which of the following characteristics are emphasized in the accounting for state and local government entities? i. revenues should be matched with expenditures to measure success or failure of the government entity. ii. there is an emphasis on expendability of resources to accomplish objectives. a. i only b. ii only c. i and ii d. neither i nor ii

Adisadvantage of corporations is that shareholders have to pay on profits.