An emissions fee is preferable to a cap-and-trade when MSB are elastic and costs are uncertain.

A. True
B. False
C. Uncertain


A. True

Economics

You might also like to view...

Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists would prescribe which of the following policies? 

A. nonintervention B. active monetary policy C. contractionary D. expansionary

Economics

When a firm is experiencing decreasing marginal costs, it implies

a. marginal productivity is decreasing b. workers are getting more unproductive c. a constant marginal productivity d. increasing marginal productivity

Economics

Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs:

A. A. B. B. C. C. D. D.

Economics

On the graph, label the short-run and long-run supply curves.

Economics