Why should a system of marketable pollution permits lead to less costly pollution abatement than a command-and-control system?
What will be an ideal response?
Even if both systems lead to the same pollution abatement, in the case of marketable permits the most expensive polluters can continue to pollute while those for whom cleanup is less costly can choose to clean up.
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When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.
The figure above shows the demand curve, marginal revenue curve, and marginal cost curve
The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________. A) abf; ace B) abf; bcd C) ace; bcd D) ace; abf E) bcd; ace
Suppose I have $1,000 to put into a one-year CD. Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent. If I place my money in Squidbank, my economic profit on the investment is
a. 5.40 percent b. 5 percent c. 0.40 percent d. 0.15 percent e. -0.40 percent
The change in total output when one additional unit of labor is hired is known as the
a. capacity utilization rate b. average product of labor c. marginal product of labor d. total product of labor e. marginal output of labor