Which of the following is a difference between corrective taxes and tradable pollution permits?
a. Corrective taxes are a market-based solution while tradable pollution permits are a command-and-control policy.
b. With a corrective tax the government sets the price of pollution; with tradable pollution permits, demand and supply set the price of pollution.
c. With corrective taxes firms pay for pollution; with tradable pollution permits firms do not.
d. Corrective taxes internalize the pollution externality while tradable pollution permits do not.
b
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In the balance of payments, the buying and selling of real and financial assets is represented in
A) current account. B) capital account. C) labor account. D) official reserve transactions account.
The reward offered to households to refrain from spending their income on current consumption and instead save their income is
a. rent b. credit c. utility d. interest e. forgone utility
Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market. Why isn't the price of wholesale diamonds $10,000 per carat?
a. because the government would not allow such a high price b. because stockholders would not allow such a high price c. because the company would sell so few diamonds that it would earn higher profits by selling at a lower price d. All of the above are correct.
Political parties
A. have a large influence on setting the political agenda of candidates. B. are only concerned with market efficiency. C. have primaries that influence the party platform. D. have a large influence on setting the political agenda of candidates and are only concerned with market efficiency. E. have a large influence on setting the political agenda of candidates and have primaries that influence the party platform.