What is a pollution haven, and is there evidence that pollution havens exist?
What will be an ideal response?
Countries that compete by offering foreign firms a reduced set of environmental compliance requirements are known as pollution havens. Empirically, there is evidence that some dirty industries from high-income industrial economies moved to low- and middle-income countries in the 1970s when the industrial economies first began cracking down on environmental polluters. Steel and chemical industries fall into this pattern, although it is possible that the developing countries were gaining a comparative advantage in these areas as high-income countries were losing theirs. Regardless, there is strong evidence showing that the idea of pollution havens is invalid; that is, it is impossible to identify any country that successfully competes for new investment on the basis of low environmental standards.
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Bond rating agencies are important in the channeling of funds to __________ firms in __________-oriented systems
A) small; banking B) small; markets C) large; banking D) large; markets
Over the last 100 years labor force participation by elderly males has fallen from over 2/3 to 1/5
Indicate whether the statement is true or false
Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text. B) The textbook does not include normative statements. C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis. D) The selection of topics included in the book involves value judgments as well as economic theory.
The equilibrium interest rate will change if
a. the money demand curve shifts b. there is a movement along the money demand curve c. crowding out becomes so serious that the dollar loses value d. the federal funds rate fluctuates rapidly e. Congress threatens to put a cap on interest rates