Answer the following statement(s) true (T) or false (F)
1. Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches.
2. The uniformity of technology-based standards is the characteristic that allows them to achieve cost-effectiveness.
3. According to the cost-effectiveness criterion, trading of SO2 allowances under the CAA should continue as long as MSBabatement>MSCabatement.
4. Because of the dual-control approach, emissions limits tend to be more stringent for newer facilities, creating a bias against building newer, and hence cleaner, facilities.
5. In an allowance market, buyers will purchase allowances as long as the price is higher than their MAC, which results in a cost-effective solution.
1. False
2. False
3. False
4. True
5. False
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Why is determining whether a hypothesis is acceptable more difficult in economics than in the natural sciences?
a. Unlike natural scientists, economists have to use laboratory settings for their tests. b. Unlike natural scientists, economists cannot make broad assumptions about human behavior. c. Unlike natural scientists, economists cannot easily control the variables that affect their subjects. d. Unlike natural scientists, economists have to make abstractions more connected to reality.
Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is
A) $200. B) $1,800. C) $2,000. D) $20,000.
In Figure 20.1, the increase in Real GDP might reflect 
A. a stronger currency. B. reduced worker productivity. C. adoption of sound fiscal and monetary policies. D. elimination of "welfare as we know it."