If an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by
a. a corrective tax, but not by regulation.
b. regulation, but not by a corrective tax.
c. either regulation or a corrective tax.
d. neither regulation nor a corrective tax.
a
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Assuming an economy starts in long-run equilibrium, if the aggregate demand curve were to decrease:
A. prices in the economy would increase. B. output in the economy would increase. C. the short-run aggregate supply curve would shift left. D. the long-run effect would be a lower price level.
Which of the following are among the effects of exposure to SO2 and NOX?
a. visibility impairment c. forest damage b. acidification of surface waters d. all of the above
Refer to the above graph. At output level H, the area:
A. 0CGH represents the firm's variable cost of production. B. 0CGH represents the firm's fixed costs of production. C. ACGE represents the firm's economic profit. D. 0AEH represents the firm's economic profit.
If S = -50 + 0.4Y and I = 70, then the equilibrium level of income is
A. 180. B. 300. C. 420. D. 450.