If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market.
B) appeal to firms' environmental conscience to pollute less.
C) subsidize production.
D) rely on the Coase Theorem.
A
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Describe the choices that producers make and explain why producers are efficient on the market supply curve
What will be an ideal response?
A transfer payment is a sum of money
a. spent by government for new goods and services. b. shifted between members of a household. c. given by government without a good or service in exchange. d. moved between companies for goods and services. e. required to pay taxes.
If the Bush tax cuts were allowed to expire in 2010, the maximum personal income tax rate in the United States would have moved above 50 percent
a. True b. False Indicate whether the statement is true or false
With an upward-sloping supply curve, which of the following istrue?
A. An increase in price results in a decrease in quantity supplied. B. An increase in price results in an increase in supply. C. A decrease in price results in a decrease in quantity supplied. D. A decrease in price results in an increase in supply.