Under a system of financial penalties for polluters:
a. Firms could pollute all they wanted to.
b. Firms would have to pay a tax for each unit of pollution created.
c. Firms would be encouraged to pollute less.
d. All of the above are correct.
d
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
"The theory that regulation seeks an efficient use of resources is called the capture theory of regulation." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
In 1903 when air pollution from a Montana smelter owned by the Anaconda Smelting Company destroyed grass and killed some cattle owned by ranchers downwind from the smelter, the ranchers sued for damages and the court
a. ordered the company to pay for the damages caused by its smelter. b. held the company liable for any future damages caused by its omissions. c. recognized that the company would pollute less when it was made accountable for the damage caused by its omissions. d. all of the above.
Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. The equilibrium level of income is
A. $2,000 billion. B. $3,400 billion. C. $3,600 billion. D. $3,800 billion.