Suppose that the government signs a international treaty that cuts the amount of carbon emitted into the atmosphere by 50%. In the market for pollution permits, the:
A. supply of permits will increase.
B. supply of permits will decrease.
C. demand for permits will increase.
D. demand for permits will decrease.
Answer: B
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Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate. B) The demand for zinc miners will decrease, reducing the market wage rate. C) The demand for zinc will increase, raising the market price further. D) The demand for zinc miners will decrease, reducing the market price back to its original price.
Supply is said to be ____ when the quantity supplied is not very responsive to changes in price
a. independent b. inelastic c. unit elastic d. elastic
The income generated by _____ will be included in the GDP of an economy
a. a professional working in small start-up firm outside the territory of the economy b. a person selling marijuana to college students c. a person selling electronic guides to tourists d. a farmer selling oranges to a fruit juice manufacturer
Income mobility studies suggest that poverty
a. cannot be alleviated by privately sponsored anti-poverty programs. b. cannot be alleviated by government sponsored anti-poverty programs. c. is a long-term problem for a relatively large number of families. d. is not a long-term problem for most families.