If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated, a marketable pollution permit trading for $14 per ton could
A. earn PG&E $6 per ton and save Con Ed $4 per ton.
B. save PG&E $6 per ton and earn Con Ed $4 per ton.
C. save PG&E $4 per ton and earn Con Ed $6 per ton.
D. earn PG&E $4 per ton and save Con Ed $6 per ton.
Answer: D
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Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.
The German inflation rate after World War I was measured in the thousands of percent. This condition is referred to as
A. fundamental inflation. B. environmental inflation. C. hyperinflation. D. episodic inflation.
The federal income tax code of the United States is
A) progressive. B) proportional. C) regressive. D) progressive for individuals but proportional for married couples.
Your next-door neighbor has a beautiful rose garden, but you are allergic to roses and cannot use your yard because of the rose pollen that drifts into your yard. In this case, the rose garden is an example of a
A. good that provides an external benefit. B. good that imposes an external cost. C. public good. D. Pareto good.