Question:

Economics related, multiple choice, PLease respond if you know it, otherwise just leave it alone.?

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For each of the following public policies, identify whether it is a command-and-control policy (regulation), a corrective tax, a corrective subsidy, or a tradable permit system.

3.2. The Federal Aviation Administration (FAA) adds a surcharge to each leg of an airline journey to help relieve airspace congestion.

A. Corrective subsidy

B. Command-and-control policy (regulation)

C. Corrective tax

D. Tradable permit system

Second question is

1. Goods are rival in consumption if:

A. It is possible to prevent an individual from using the good.

B. The quantity of the good is affected by the price a consumer pays for the good.

C. Consumption of a good by one person decreases consumption by another person.

D. It is NOT possible to prevent an individual from using the good.

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1 ANSWERS


  1. 1. C. It would be a corrective tax because you are trying to correct harm (congestion) by charging a fee or tax.

    2. A. A good is rivalous if you can prevent some one from using a good; otherwise it would be a public good.

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