Refer to the above diagram illustrating a market for pollution rights in which government has fixed the supply of rights at 1,000 tons. If there were no market for pollution rights in this case, the volume of pollutants discharged would be:
A. zero.
B. 2,000 tons.
C. 1,000 tons.
D. 1,500 tons.
Answer: D
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In a centrally planned economy, the government decides how economic resources will be allocated
Indicate whether the statement is true or false
The chairman of the Federal Reserve is considered one of the most important economic positions in the world because this person has significant direct control over the conduct of:
A. fiscal policy in the United States. B. monetary policy in the United States. C. international trade policy in the United States. D. government budget in the United States.
The Norfolk Bank has $18,000 in excess reserves and the reserve ratio is 20 percent. How much checkable deposits and reserves does this bank hold?
A. $160,000 in checkable-deposit liabilities and $48,000 in reserves B. $140,000 in checkable-deposit liabilities and $46,000 in reserves C. $120,000 in checkable-deposit liabilities and $32,000 in reserves D. $100,000 in checkable-deposit liabilities and $30,000 in reserves
A higher savings rate that leads to an increase in the capital stock
A) leads to higher interest rates. B) leads to increases in labor productivity. C) immediately decreases investment. D) is associated with a decrease in the rate of growth of the population.