In a market for emission permits, firms that emit over their allowed limits
A. receive a subsidy for the amount of emissions.
B. are taxed by the government for the amount of emissions.
C. pay a price of these emissions.
D. are forced to shut down.
Answer: C
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Specific tariffs are
A) import taxes stated in specific legal statutes. B) import taxes calculated as a fixed charge for each unit of imported goods. C) import taxes calculated as a fraction of the value of the imported goods. D) the same as import quotas. E) import taxes calculated based solely on the origin country.
Often, the farther real GDP is below potential GDP,
A) the smaller the multiplier effect. B) the larger the multiplier effect. C) the less effective is the multiplier effect. D) the less meaningful is the multiplier effect.
Suppose Lisa spends all of her money on books and coffee. When the price of coffee decreases, the
A) substitution effect on coffee is positive, and the income effect on coffee is positive. B) substitution effect on coffee is ambiguous, and the income effect on coffee is ambiguous. C) substitution effect on coffee is positive, and the income effect on coffee is ambiguous. D) substitution effect on coffee is ambiguous, and the income effect on coffee is positive.
Which was not a factor in causing the Great Depression?
a. the end of a boom in construction b. the crash of the stock market c. a struggling agriculture sector d. structural weakness in the banking system e. All of the above were factors causing the Great Depression.