Answer the following statements true (T) or false (F)
1. In a well-functioning "cap-and-trade system" for pollution rights, society benefits because pollution will be brought down to insignificant levels.
2. In a well-functioning cap-and-trade system for pollution rights, the right to pollute will go to those who are able to acquire the largest net benefit from using the scarce resource "clean air".
3. Asymmetric information occurs when the two parties in a market transaction do not have the same amount of information regarding the product or process involved in the transaction.
4. The licensing and regulation of financial advisers is one way by which the government tries to deal with the problem of inadequate information that financial firms about their customers.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
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Sabrina is a college professor in Houston, Texas who earns a salary of $95,000. She is single, just put down $25,000 on a new townhouse, and has no children. Explain if Sabrina has any way of reducing her payroll taxes or her personal income tax
What will be an ideal response?
What are the similarities between an English auction and a Dutch auction?
What will be an ideal response?
Members of the European Monetary Union
A. adopt a common currency called the euro. B. float their domestic currency exchange rate with both the euro and the rest of the world. C. can continue to use their own domestic currency but are required to hold a stipulated amount of a common currency. D. cannot hold reserves of the common currency.
If a corporation earns a profit, how do owners of the firm share in the profit?
A) through coupon payments on that firm's bonds B) through dividend payments on shares of that firm's stock C) by selling any bonds or stocks owned and realizing a capital gain D) by raising the interest rate on bonds