The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that
a. all firms reduce pollution equally and fairly.
b. firms that are able to clean up at lowest cost do so; others don't.
c. large polluters clean up the most, which is always lowest cost.
d. small polluters clean up the most, which is generally the cheapest.
b
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?
A) 30 cans of cola per chocolate bar B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar
Demand-side inflation is usually accompanied by increasing real GDP, while supply-side inflation is usually accompanied by falling real GDP
a. True b. False Indicate whether the statement is true or false
The Federal Funds Market provides for day to day lending and borrowing among banks having excess reserves on account at the Fed
Indicate whether the statement is true or false