In terms of their economic effects, which of the following policies toward pollution are most similar to one another?
a. regulation and corrective taxes
b. regulation and tradable pollution permits
c. corrective taxes and tradable pollution permits
d. All of these policies produce the same economic effects.
c
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The demand curve for loanable funds slopes down because
A) at lower bond prices more loanable funds will be supplied. B) lower interest rates reduce the inflation rate. C) an increase in the interest rate makes borrowers more willing and able to demand more funds. D) a decrease in the interest rate makes borrowers more willing and able to demand more funds.
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
a. increase exports b. reduce the competitive pressure on prices c. lower the value of the currency in the country with the higher inflation rate d. increase foreign aid e. increase the speculative demand for the currency
Exhibit 1A-4 Straight line
Straight line A-D in Exhibit 1A-4 shows that:
A. as the X value increases by 80, the Y value increases by 40 so the slope is 2. B. as the Y value increases by 40, the X value increases by 80 so the slope is 1/2. C. increasing values for X do not affect the value of Y. D. increasing values for Y do not affect the value of X.
Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consumer goods200 180 140 80 0 In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect
A. less growth in the future because it will use up its consumer goods. B. more growth in the future because of the accumulation of capital. C. the same amount of growth in the future but with a lower standard of living. D. the same amount of growth in the future but with a higher standard of living.