Which of the following is necessary for a system of marketable pollution permits to lead to beneficial trades between polluting companies?
A. Companies must have common abatement costs.
B. There must be differences in abatement costs between companies.
C. Company owners must have a social conscience and must be devoted to pollution abatement.
D. The government must direct companies toward beneficial trades.
Answer: B
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The Coase theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs B) existence of property rights C) government intervention D) All of the above answers are correct.
Which of the following best describes a "bubble"?
A) when the price of an asset reaches a new high B) an unsustainable increase in the price of a class of assets C) rapid increases in inflation D) when bond prices rise more quickly than stock prices
We may infer from the downward slope of the IS curve that lower interest rates are associated with ________
A) higher output B) higher saving and/or lower net exports C) higher investment D) all of the above E) none of the above
In the mid-1990s, real interest rates fell in the United States. This was the result of budget deficit
a. increases and tighter monetary policy. b. increases and looser monetary policy. c. reductions and looser monetary policy. d. reductions and tighter monetary policy.