Pollution abatement is likely to be most costly under:
a. a compliance standard
b. a per-unit pollution tax system.
c. a system of transferable pollution rights.
d. Costs are the same under all three pollution control policies.
a
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Unanticipated inflation will insure that
A) homeowners with outstanding mortgage balances are hurt. B) homeowners with outstanding mortgage balances are benefited. C) creditors gain, debtors lose. D) none of the above
In order to calculate the real interest rate, simply:
A. add the rate of inflation to the nominal interest rate. B. subtract the rate of inflation from the nominal interest rate. C. subtract the nominal interest rate from the rate of inflation. D. divide the nominal interest earned by the rate of inflation.
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Dirty Inc. ($/day)$100$200$380$740$1,460Cost to Filthy Inc. ($/day)$400$430$490$580$700 If pollution is unregulated, then a total of ________ tons of smoke will be emitted each day.
A. 1 B. 2 C. 8 D. 4
The main reason our current account deficit is so large is that
A. we are running huge merchandise trade deficits. B. we are running huge federal budget deficits. C. we are allowing too much foreign investment in the United States. D. we are investing too much abroad.