Permits that allow a firm to emit a specific amount of pollution are called ____________
a. Pigouvian or pollution taxes
b. tradable pollution permits
c. pollution standards
d. technology-based regulations
e. None of the above.
Ans: b. tradable pollution permits
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Two related ways to quantify a person's degree of risk aversion are the certainty equivalent and the risk aversion premium. ?
Answer the following statement true (T) or false (F)
If, as price increases by 10 percent, total revenue decreases by 10 percent, demand is
A. elastic. B. unit elastic. C. inelastic. D. perfectly inelastic.
When a perfectly competitive market has fully adjusted to demand and supply conditions, all of the following are true except:
A) P = MC. B) P = the minimum of SRATC. C) P = the minimum of LRAC. D) P = the minimum of AVC.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.