List and briefly define the three methods government can use to cope with an external cost, such as pollution
What will be an ideal response?
The three methods are emission charges, cap-and-trade, and taxes. Emission charges set a price per unit of pollution that the firm pays to the government. With a cap-and-trade policy, the government issues marketable permits to firms that allow them to pollute by an amount assigned by the permit. The permits can be bought and sold among firms. Taxes can be imposed on polluting firms. If this tax equals the marginal external cost, efficiency can be attained.
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Knowledge and skills are part of ________ in an economy
A) educational functions B) market growth C) human capital D) innovation
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
At one time, many economists believed that
A. the government could determine the slope of the Phillips curve. B. the government could make the Phillips curve horizontal. C. the government could decide at which point on the Phillips curve the economy should be. D. the government could determine what the Phillips curve should be.
If businesses feel more optimistic about the state of the economy, then this change is likely to:
A. Cause a movement up the investment demand curve B. Cause a movement down the investment demand curve C. Shift the investment demand curve to the left D. Shift the investment demand curve to the right