In a tradeable effluent permit market,
a. effluent allowances may be used, but not effluent credits
b. high-cost abaters will buy permits as long as the price is lower than their MAC
c. a permit price should be established where all polluters’ MACs are equal
d. all of the above
e. (b) and (c) only
e. (b) and (c) only
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If float is predicted to decrease because of good weather, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
In reality, the long-run supply curve for a perfectly competitive market is upward sloping because:
A. of changing costs of production that firms may face. B. not all firms have identical cost structures. C. experienced firms will have different information and costs than new firms. D. All of these are true.
Compared to other countries, the U.S. federal government relies
a. more heavily on direct taxes than do governments of other countries. b. less heavily on direct taxes than do governments of other countries. c. more heavily on indirect taxes than do governments of other countries. d. on direct taxes about as heavily as do governments of other countries.
Why do political instability and insecure property rights retard economic growth?
a. Fear that private property will be confiscated substantially reduces the incentive to invest and create wealth. b. When property rights are insecure, foreign investors will be reluctant to invest in the country. c. Savings will tend to flow out of a country if individuals fear their property is insecure. d. All of the above are correct.