The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:
A. the government can raise additional revenue.
B. pollution is driven to zero.
C. enforcement costs are eliminated.
D. pollution reduction is accomplished in the least costly way possible.
Answer: D
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The peak in U.S. government spending as a percent of GDP occurred during
A) World War II. B) the 1960s war on poverty. C) the Great Depression. D) the war against Iraq in the 2000s.
In an Edgeworth box, all points of efficiency occur at the
A) intersections of the indifference curves. B) the points of tangency between the sets of indifference curves. C) in the midpoint of the diagram. D) at any point other than the intersections of the indifference curves.
A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
If the demand for dollars in the market for foreign-currency exchange shifts right, then the exchange rate
a. rises and the quantity of dollars exchanged rises. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged falls. d. falls and the quantity of dollars exchanged does not change.