If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will
A) buy permits from other firms.
B) sell permits to other firms.
C) hold on to the permits they have been issued and not attempt to buy more.
D) not be issued permits.
B
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The coordination task of dividing products among consumers is a problem of
a. output selection. b. production planning. c. distribution. d. market segmentation.
Suppose a typical firm in a particular industry is making positive economic profits. These economic profits
a. reflect a waste of society's scarce resources and reflect inefficient production. b. signal owners of factors of production to move their resources out of that industry. c. imply that accounting costs are greater than economic costs in this industry. d. signal owners of factors of production to move resources into this industry.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90
Members of the Federal Reserve Board of Governors are appointed for one 14-year term so that they
A. Make their decisions based on economic, rather than political, considerations. B. Have enough time to travel to all 12 regional banks. C. Have time to learn how the Fed operates. D. Are more likely to make politically acceptable decisions.