If a Pollution Tax in a Market with an External

question 21

Multiple Choice

If a pollution tax in a market with an external cost changes the market so that it produces the efficient level of output,which of the following occurs?
i.the supply curve shifts leftward
ii.the price increases
iii.the quantity produced decreases

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i, ii, and iii

Understand the relationship between future profit expectations and stock prices.

Differentiate the performance and purposes of index funds versus actively managed mutual funds.

Comprehend the role of mutual funds as financial intermediaries.

Understand how corporations finance their operations and the implications of stock resales.

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Definitions:

Capitalist Societies

Societies characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Class Status

An individual's or group’s position within a hierarchical social structure influenced by factors like wealth, occupation, education, and lineage.

Status Inconsistency

A situation in which an individual holds differing and contradictory levels of status in terms of wealth, power, prestige, or other elements of socioeconomic status.

Prestige

The respect, admiration, or high regard accorded to an individual, occupation, or organization based on perceived successes, achievements, or status.