A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
a. The pollution will be created by those least willing and able to pay the damages.
b. The pollution will be created by those most willing and able to pay for the right to pollute.
c. The funds collected by the government will be enough to compensate any individuals harmed by the pollution.
d. Pollution will increase from zero to 1,000 units per day.
b
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An individual in the US wants to buy a car from England which costs 12,000 pounds. If the exchange rate is 1 pound = $1.75, how much would the car cost him in dollars?
a. $21,000 b. $6,800 c. $12,000 d. Need more information
The gold standard ended with the:
a. rise of Napoleon to power. b. American Declaration of Independence. c. outbreak of World War I. d. first Arab oil embargo. e. presidency of Richard Nixon.
Which of the following examples shows an increase in total revenue for demand that is price elastic?
a. When the price of detergent decreases by 4 percent, the quantity demanded increases by 4 percent. b. When the price of mops increases by 10 percent, the quantity demanded decreases by 13 percent. c. When the price of pillows decreases by 2 percent, the quantity demanded increases by 6 percent. d. When the price of lamps increases by 6 percent, the quantity demanded decreases by 9 percent.
Rent control is a price _____.
Fill in the blank(s) with the appropriate word(s).