Which of the following is an advantage to the pollution-rights approach to environmental quality?
a. Polluters are compelled to clean up completely.
b. Polluters have appropriate incentives to clean up.
c. This is a method of direct government regulation.
d. Compliance with legal guidelines is discretionary.
b
You might also like to view...
Suppose a consumer is willing to pay $20 for one good X, $10 for a second, and $5 for a third, and the market price is $4 . The consumer surplus is:
a. $16 b. $6. c. $1 d. $23.
John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. ?Prefer buying in the US b. ?Prefer buying in Mexico c. ?Be indifferent about where he buys his television d. ?None of the above
A futures contract is a forward contract with some important differences. Explain.
What will be an ideal response?
Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. $5.00; 4 B. $7.00; 6 C. $5.00; 10 D. $7.00; 7