Explain how Coase's theorem is implemented by the Environmental Protection Agency (EPA).
What will be an ideal response?
According to Ronald Coase, externalities can be mitigated by providing property rights to the agents. If the rights to pollution are given to industries, and if they are allowed to trade these rights, then those who need the rights will pay for them. This basic idea was implemented by the EPA. In 1995, it set a cap on the number of tons of sulfur dioxide allowed into the air. The government issued to the 110 dirtiest power plants tradable certificates that matched their share of the cap. If companies cut their emissions below their caps, they could sell the excess to other companies that had not made the necessary cuts. Total trading amounted to $3 billion in 2003 and reduced emissions 30% nationwide.
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________ is the narrowest monetary aggregate that the Fed reports
A) M0 B) M1 C) M2 D) M3
In the Solow model, if k = 8, y = 24, and s = 0.25, what is c?
A) 24 B) 20 C) 18 D) 12
Prosperity in the United States is evenly distributed across the fifty states
a. True b. False Indicate whether the statement is true or false
Looking at the record of concentration in the United States during the last century, one finds concentration has
a. steadily increased. b. risen dramatically in the past 15 years. c. changed very little. d. fallen steadily except in wartime.