Under a system of marketable pollution permits, the government:
A. chooses a level of pollution.
B. distributes permits to polluting firms.
C. allows firms to trade permits.
D. All of these
Answer: D
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An individual will never buy complete insurance if:
a. he or she is risk averse. b. insurance premiums are unfair. c. he or she is a risk taker. d. insurance premiums are fair.
Government intervention is always preferable to doing nothing when reducing the social inefficiencies of monopoly
a. True b. False Indicate whether the statement is true or false
A market is said to be in equilibrium when
A. The supply intentions of all sellers are realized. B. Demand is fully satisfied at all alternative prices. C. The quantity demanded equals the quantity supplied. D. The buying intentions of all consumers are realized.
Which would decrease investment demand?
a. A decrease in the stock of capital goods on hand b. A decrease in business taxes c. An increase in the rate of technological change d. An increase in the cost of acquiring capital goods