Under an emissions tax program, the government sets ____; under an emissions permits program, the government sets ____
a. the price of the right to pollute; the price of the right to pollute
b. the price of the right to pollute; the permitted total quantity of pollution
c. the permitted total quantity of pollution; the price of the right to pollute
d. the permitted total quantity of pollution; the permitted total quantity of pollution
b
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Refer to Figure 10.2. Assume the economy is initially at equilibrium at potential GDP of $500 billion. If the MPC = 0.80 , and real GDP falls to Y2 = $400 billion, the vertical distance between AE1 and AE2 must be
A) $8 billion. B) $20 billion. C) $80 billion. D) $100 billion.
Which of the following changes to the market in the graph shown could cause the price ceiling to become non-binding?
A. Demand could increase, and shift to the right.
B. Supply could increase, and shift to the left.
C. Supply could increase, and shift to the right.
D. Supply could decrease, and shift to the left.
Economic development is:
A. about the quality of life for all sectors of society. B. an indicator of individual poverty. C. a measurement of available resources. D. about increases in real GDP only.
Which of the following is not an example of an incomes policy?
A. presidential jawboning B. unemployment insurance C. wage and price guidelines D. wage and price controls