Which antipollution policy would be least likely to make use of cost-benefit analysis?
A. Creating a market for pollution rights.
B. Enacting legislation that bans pollution.
C. Using private bargaining when the property rights are clearly defined, the number of people involved is small, and negotiation costs are small.
D. Charging polluters an emission fee.
Answer: B
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When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates. B) the real exchange rate depreciates even when the nominal exchange rate is constant. C) the real exchange rate appreciates. D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
Suppose that the consumer price index in Eastlandia rises from 150 to 159 over the past year, and that the city sets its car registration prices so that real prices stay the same. If the cost to register a car was $50 last year, how much would it cost this year, in nominal terms?
a) $50 b) $53 c) $56 d) $59
Refer to the above supply and demand graph. In the graph, point A is the current equilibrium level of output of this product and point B is the optimal level of output from society's perspective. S is the supply curve without a tax and St is the supply curve with a tax. If government corrects this externality problem with a tax so that all the costs are included in the cost of production, then the product price will be set at point:
A. E. B. D. C. F. D. G.
Gilda's Art Gallery rewards its employees with stock each year the gallery makes profits. This stock allows the employees to own part of the gallery. This practice is known as
A) the principle-agent problem. B) incentive pay. C) minimizing implicit costs. D) minimizing explicit costs.