Which one of the following statements is false?
a. Technological progress will lower the price of transferable pollution permits
b. Under a pollution tax, technological progress will reduce overall pollution levels
c. Under a system of transferable permits, technological progress will reduce overall pollution levels
d. A pollution tax creates an incentive for technological progress
e. Under a system of transferable permits, technological progress can result in some firms increasing their pollution levels
Answer: c. Under a system of transferable permits, technological progress will reduce overall pollution levels
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In the United States, the distribution of wealth
A) is the same as the distribution of income. B) is more unequal than the distribution of income. C) is more equal than the distribution of income. D) is equal for all families.
The Federal Reserve Open Market Committee meets about ____ times a year
a. 8. b. 12. c. 4. d. 2. e. 24.
If the price elasticity of supply for a window manufacturer is 1.5,
a. a 10% increase in the price of windows results in a 15% increase in the quantity of windows supplied. b. supply is considered to be inelastic. c. the manufacturer is likely operating very near capacity. d. All of the above are correct.
Use the figure below to answer the following question.
The diagram concerns supply adjustments to an increase in demand (D1 to D2) in the immediate period, the short run, and the long run. On the basis of this illustration, we can conclude that
A. the amount of time producers have to adjust to a change in demand is not a determinant of the elasticity of supply. B. supply is relatively more inelastic the greater the amount of time producers have to adjust to a change in demand. C. short-run adjustments are more economically efficient than are long-run adjustments. D. supply is relatively more elastic the greater the amount of time producers have to adjust to a change in demand.