In the market for pollution permits, the total supply of permits is:
A. perfectly inelastic.
B. perfectly elastic.
C. determined by the Chicago Board of Trade.
D. always equal to the demand for permits.
Answer: A
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Refer to the figure above. What is the domestic production of pens in Lithasia, after the economy opens up to free trade?
A) 6 units B) 12 units C) 16 units D) 22 units
A 5% increase in real income usually leads to ________ in money demand
A) a decrease B) no change C) an increase of less than 5% D) a decrease of 5%
When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
a. mutual interdependence. b. price leadership. c. collusion. d. monopolistic competition.
________ argued for a tax on consumption instead of on income because the standard of living depends not on income, but on how much is consumed.
A. Irving Fisher B. John Rawls C. Ben Bernanke D. Thomas Hobbes