In a situation where there is no incentive to cut pollution because it will make domestic firms less competitive, it will improve world welfare if:
a. nations impose tariffs on polluters.
b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws.
c. there is a ban on production until we can scientifically solve our pollution problems.
d. we allow the market to work in this case.
Answer: b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws.
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Economics is the study of ________ and its ________ (Fill in the blanks:)
)A) greed; desirable consequences B) choice; unintended consequences C) money; financial consequences D) competition; legal consequences
In the long run if there is a shortage in the market for a product, the guiding (allocation) function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the demand for the product. C) an increasing shift in the supply of the product. D) a decreasing shift in the supply of the product.
Why does the labor market have more than one equilibrium wage rate?
a. Workers differ in their productivities. b. Productivity of workers increases initially but later declines. c. The labor demand curve is backward bending. d. Marginal revenue product of different inputs used by firms vary. e. Employers compete among themselves to hire the best workers.
A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) All of the above.