Direct controls that impose equal percentage reductions in emissions on all firms in the area
a. impose the same costs on all firms.
b. minimize the cost of pollution reduction.
c. penalize firms that have already incurred some costs to reduce pollution.
d. are the fairest way to distribute the burden
c
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The defining feature of business cycles is that they
A) are inherently bad. B) represent the underlying trend of real GDP in the economy. C) are fluctuations about trend in real GDP. D) measure prospects for future growth in the economy.
Joan has the following assets and liabilities:Credit Card balance$1000Cash$200Government bonds$3,000Checking$1,500Car loan balance$10,000Car$15,000Which of the following actions would increase Joan's money demand by $100?
A. Joan pays $100 cash for a new lamp. B. Joan sells a $100 government bond and puts the proceeds in her checking account. C. Joan writes a check for $100 to pay down her car loan balance. D. Joan writes a check for $100 to pay down her credit card balance.
Direct subsidies to agriculture, whether they are export subsidies or production subsides, are viewed as harmful because of all the following reasons EXCEPT
A) they lead to overproduction. B) they crowd out imports. C) they can lead to dumping of surplus production. D) they encourage overconsumption through low market prices.
If the absolute price elasticity of demand is 2.5, a 10 percent increase in the price will cause
A) the quantity demanded to decrease by 2.5 percent. B) the quantity demanded to decrease by 25 percent. C) the quantity demanded to decrease by 4 percent. D) the quantity demanded to decrease by 40 percent.