A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
a. The pollution will be created by those least willing and able to pay the damages.
b. The pollution will be created by those most willing and able to pay for the right to pollute.
c. The funds collected by the government will be enough to compensate any individuals harmed by the pollution.
d. Pollution will increase from zero to 1,000 units per day.
e. There will be no incentive for polluters to try to sneak emissions past government monitoring devices.
B
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Classical economists and monetarists perceive
A. investors' expectations about returns on investment as unstable. B. large investment swings as responses to small changes in interest rates. C. that the best way to cure unemployment is to start a war. D. that the proper cure for unemployment is active fiscal policy.
Which combination of circumstances will most likely raise the rate of interest for a loan the most?
A) low handling charges and low risk B) low handling charges and a long length of time for repayment C) high risk and low handling charges D) high risk and a long length of time for repayment
Describe the policies that would be associated with Import Substitution Industrialization. What are the primary criticisms of these policies?
What will be an ideal response?
A supply schedule shows: a. projected sales as ad spending varies
b. how many units producers are willing and able to sell at various prices. c. possible combinations of output as input prices vary. d. how many units consumers would like to buy at various prices.