With pollution permits, the supply curve for pollution rights is
a. perfectly elastic.
b. perfectly inelastic.
c. upward sloping.
d. downward sloping.
b
You might also like to view...
If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit. B. firms will generally gain by earning higher profits. C. minimum wages may still be binding for many employees. D. most likely the government won’t study how minimum wage legislation may affect employment.
On a graph, consumer surplus is represented by the area
a. between the demand and supply curves. b. below the demand curve and above price. c. below the price and above the supply curve. d. below the demand curve and to the right of equilibrium price.
A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar. When the fleet arrived the exchange
rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.
A depreciation of the U.S. dollar relative to the euro would tend to
A) increase U.S. imports from Germany. B) increase U.S. exports to Germany. C) decrease U.S. exports to Germany. D) increase both U.S. imports from Germany and U.S. exports to Germany.