In principle, a cap-and-trade program would
A) cause firms to generate more pollution than their allowed limits.
B) cause firms to generate less pollution than their allowed limits.
C) raise the production costs of all firms.
D) lower the production costs of all firms.
Answer: B
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The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A. only offered coupons half of the time. B. also published coupons. C. did not publish coupons. D. chooses either strategy because Column Cafe will have the same profit in either case.
The open economy multiplier is calculated as follows:
A) 1/[1-(marginal propensity to consume + marginal propensity to invest)] B) 1/[1-(marginal propensity to consume + marginal propensity to import)] C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)] D) 1/[1-(marginal propensity to consume + marginal propensity to invest - marginal propensity to import)]
Waste systems and highways are part of a nation's infrastructure
a. True b. False Indicate whether the statement is true or false
A . Explain how public debt can crowd out private investment. b. Even if the crowding out effect does occur, explain the argument that crowding out does not necessarily undermine overall economic growth