Econ

Question 1

Pigouvian Tax

Answer 1

Gov. taxes a company fir each unit of pollution it emits

Question 2

Coase Theorem

Answer 2

Private Parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own.

Question 3

Traditional Economic Systems…

Answer 3

Produce Raw goods and supplies: through manual work or farming: for subsistence / for other villages

Question 4

Command Economic Systems…

Answer 4

Produce what the state wants: by paying people standardized incomes: for whatever the state wants

Question 5

Market Economic Systems…

Answer 5

Produce for revenue: through the incentive of money: for the producer / consumer

Question 6

The U.S. is a command economic system in that it _______ and is a market system in that it ________

Answer 6

has the affordable healthcare act, adjusted incomes rates: has few tariffs, is “officially” capitalist, and encourages competition up to a point

Question 7

France is a command economic system in that it _______ and is a market system in that it ________

Answer 7

is officially socialist, gives citizens lots of benefits: believes in private property, and competition up to a degree

Question 8

Sweden is a command economic system in that it _______ and is a market system in that it ________

Answer 8

is very socialist: still has private property.