Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is socially desirable
Indicate whether the statement is true or false
FALSE
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What is the marginal cost of a good?
What will be an ideal response?
The intertemporal budget constraint is defined as:
A) DP + DF/(1 + r) = QP + QF/(1 + r) B) V = QP + QF/(1 + r) C) V = DP + DF/(1 + r) D) DF + DP/(1 + r) = QF + QP/(1 + r) E) DP + DF(1 + r) = QP + QF(1 + r)
Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a ________ change in rice consumption, and the income effect leads to a ________ change in rice consumption
A) positive, positive B) positive, negative C) negative, positive D) negative, negative
If the tea harvest is bad in a particular year, the supply of tea will
a. decrease, its price will decrease, and the quantity demanded of coffee will increase b. decrease, its price will increase, and the quantity demanded of coffee will increase c. decrease, its price will increase, and the quantity demanded of coffee will decrease d. decrease, its price will decrease, and the quantity demanded of coffee will decrease e. increase, its price will increase, and the quantity demanded of coffee will increase