We expect firms with ________ to sell marketable pollution permits to firms with ________.

A. low abatement costs; high abatement costs
B. high abatement costs; low abatement costs
C. high price goods; low price goods
D. high production capacity; low production capacity


Answer: A

Economics

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Outside lags occur because

A) it takes time to identify a problem. B) firms must change investment plans before monetary policy can be effective. C) once changes are finally diagnosed and implemented, policies are immediately effective. D) once a problem is diagnosed, it still takes time to implement policy changes.

Economics

In the table above, Jack's comparative advantage is producing ________ and Jill's comparative advantage is producing ________

A) clothing; food B) clothing and food; nothing C) nothing; clothing and food D) food; clothing E) clothing; clothing

Economics

Suppose our tastes are homothetic. It is often observed that people become more rigid --- more set in their ways --- as they get older. Can you translate this observation into "economics-speak" by discussing which feature of our tastes is likely the be changing as we get older?

What will be an ideal response?

Economics

An industry characterized by only a few firms in the market is called: a. a monopoly

b. monopolistic competition. c. an oligopoly. d. perfect competition.

Economics