If the marginal cost of pollution abatement differs across firms, then regulations that require all polluters to reduce pollution by a fixed proportion will be:
A. fair to all polluters.
B. ineffective.
C. inefficient
D. efficient.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. A disadvantage of the survey approach is that polluting sources might not be sufficiently well informed to provide good estimates. 2. According to available U.S. data, spending on pollution abatement and control has grown fairly steadily over time. 3. Expenditures on research and development represent the majority of spending on pollution and control in the United States. 4. According to the U.S. data presented in the text, the highest proportion of operating and capital abatement costs is on recycling. 5. Newly proposed controls on GHG emissions from motor vehicles are expected to elevate automobile prices.
In the classical model, what occurs if a wage of $20/hour results in unemployed workers?
A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to demand that more jobs be created. D) The government will step in and order firms to hire more workers.
A study discussed in the Making the Connection feature in the text found that there is ________ that some consumers are not well aware of prices, even for goods they buy regularly
A) substantial evidence B) no evidence C) little evidence D) no reason to believe
Private saving is defined as
A) private disposable income minus consumption. B) net national product minus consumption. C) private disposable income minus consumption plus interest. D) private disposable income minus consumption plus interest plus transfer payments.