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

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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

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

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