The three main methods that governments use to cope with an external cost of production include all of the following EXCEPT
A) taxes.
B) mandating clean technology.
C) cap-and-trade
D) price floors.
D
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Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D0 to D1?
A) a fall in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a rise in foreign interest rates
Apply the concepts of menu costs and staggered price setting to the labor market
What will be an ideal response?
In comparing tariffs and quotas, we know that
A) neither raises revenues for the federal government. B) both raise revenues for the federal government. C) tariffs raise revenues for the federal government, while quotas do not. D) quotas raise revenues for the federal government, while tariffs do not.
Which of the following can make it very difficult for monetary policy to address a recession?
a. velocity b. inflation c. deflation d. aggregate demand