Explain how a market for pollutant emission allowances can induce firms to reduce the amount of emissions
What will be an ideal response?
In the market for emission allowances, firms that exceed their pollution limits must buy allowances from firms that have unutilized allowances available. If the government tightens the pollution limits, then more firms have to purchase allowances, driving up the market clearing price of the allowances. Firms that have to pay for the higher price of allowances would have an incentive to reduce their emissions.
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An increase in the supply of U.S. dollars to the foreign exchange market could be caused by all of the following except
a. U.S. incomes rise b. U.S. interest rates fall c. U.S. consumers buy more imported cars d. U.S. incomes fall e. U.S. travelers take more trips to other countries
If a t-shirt manufacturer supplies 1,000 t-shirts per week when the price of t-shirts is $10 and supplies 1,200 t-shirts per week when the price of t-shirts is $12, the price elasticity of supply is 2
a. True b. False Indicate whether the statement is true or false
A change in consumer taste will prompt a change in _____.
Fill in the blank(s) with the appropriate word(s).
Oceania buys $100 of wine from Escudia and Escudia buys $80 of wool from Oceania. Suppose this is the only trade that these countries do. What are the net exports of Oceania and Escudia, in that order?
a. $80 and $100 b. $-20 and $20 c. $20 and -$20 d. None of the above is correct.