Briefly explain the command-and-control approach in dealing with an externality such as pollution. Give an example of the U.S. government using the command-and-control approach to deal with the pollution problem
What will be an ideal response?
Command-and-control is an approach that involves the government imposing quantitative limits on the amount of pollution firms are allowed to emit or requiring firms to install specific pollution control devices. One example listed in the text ocurred in 1983, when the federal government required auto manufacturers to install catalytic converters to reduce auto emissions on all new automobiles.
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Increases in the prices of services due to improvement in its quality indicate a(n) _____
a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.
Consider a market that sells some of its goods as exports. Who does NOT benefit?
A) foreign consumers B) workers in the industry C) domestic consumers D) domestic producers
In China: a farmer could not go to work and live in a city without city Hukou
a. True b. False
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one gardenburger is
A. 1/4 of a beer. B. 1 beer. C. 2 beers. D. changing as Mr. Lingle moves down his budget constraint.