It has been proposed that a government agency be charged with the task of determining the amount of pollution that the atmosphere (or a body of water) can safely absorb, establish "rights" to this limited amount of pollution, and sell those limited amount of rights to firms. The firms can then buy and sell these rights among themselves later. This approach is known as the:
A. Taxes and subsidies system
B. Cap and trade system
C. Property rights system
D. Market and command system
B. Cap and trade system
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If the expansion of an export industry leads to the provision of infrastructure such as roads or airports, this is called a(n)
A) secondary effect. B) linkage effect. C) elementary effect. D) None of the above.
Before the Industrial Revolution, standards of living differed
A) greatly over time and across countries. B) little over time, but differed greatly across countries. C) greatly over time, but differed little across countries. D) little over time and across countries.
Of the following, the best example of firm that might operate in a contestable market is a
A) cable TV company. B) wheat farmer. C) ship owner operating on a major waterway. D) private college operating in a state with many public colleges.
A perfect monopoly:
A. can extract all consumer surplus from a market. B. refers to a single seller. C. controls 90 to 100 percent of the market for a product. D. would produce efficient outcomes.