If the government wanted to efficiently limit the emission of Carbon Monoxide by all firms to exactly four million tons it could
A) issue rights to pollute worth four million tons and let the firms trade those rights in a market.
B) appeal to firms' environmental conscience to pollute less.
C) subsidize production.
D) rely on the Coase Theorem.
A
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The slope of the saving function is the
A) APC. B) MPC. C) APS. D) MPS.
If the government imposes a price floor at $10 (i.e. the price must be $10 or higher) in the above market, how many goods will be traded?
a. Four b. Five c. Six d. Seven
An important assumption that is made when constructing a demand schedule is that
a. only price and quantity matter in determining demand. b. people always want a certain amount of a product. c. demand is too important to be left to the economists. d. all other determinants of demand are held constant. e. demand has a positive slope.
Unemployment would decrease and prices would increase if
a. aggregate demand shifted right. b. aggregate demand shifted left. c. aggregate supply shifted right. d. aggregate supply shifted left.