When comparing a permit trading system to the use of a pollution charge
a. a permit trading system requires more government intervention because the government must determine the permit price
b. a permit trading system is inflexible because the number of permits cannot be adjusted
c. a pollution charge generates revenue for the government on all units of pollution not abated
d. pollution charges might create pollution hot spots
c. a pollution charge generates revenue for the government on all units of pollution not abated
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Which of the following lists represent leakages from the circular flow?
a. Government purchases, net taxes and household saving. b. Planned investment, net taxes and government purchases. c. Household saving and planned investment. d. Planned investment and net taxes. e. Household saving and net taxes.
Holding other factors constant, a higher relative price of a firm's output will:
A. increase national saving. B. increase investment. C. decrease investment. D. decrease national saving.
The market system's answer to the fundamental question "How will the system promote progress?" is essentially:
A. "Through government-funded research programs." B. "Through redistribution of income to promote greater equality." C. "Through training and retraining programs." D. "Through the profit potential that encourages development of new technology."
A firm will shut down in the short run if
A. fixed costs exceed revenues. B. variable costs exceed revenues. C. total costs exceed revenues. D. it is suffering a loss.