When emissions are measured on the horizontal axis, the marginal cost of abating emissions is
A) downward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so.
B) downward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain.
C) upward-sloping because emissions become more and more easy to eliminate once the firm makes the initial commitment to do so.
D) upward-sloping because a high level of emissions is cheap to attain, and a low level of emissions is expensive to attain.
E) horizontal because the technology to remove emissions is assumed constant.
B
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When government purchases are increased, the amount of the increase in aggregate demand primarily depends on
A. the size of the multiplier. B. the average propensity to consume. C. income taxes. D. exchange rates.
Refer to Figure 9-5. Without the tariff in place, the United States consumes
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.
As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level
Indicate whether the statement is true or false
The Trade Adjustment Assistance program is intended to help
a. businesses that seek to expand exports into protected foreign markets. b. local governments that are harmed when businesses fail as imports increase. c. protected industries obtain improved technology in order to increase productivity. d. workers and businesses that lose markets because of increases in imports.