If the government sells certificates giving the certificate owner permission to emit a particular amount of pollution, and then allows these certificates to be bought and sold at a market price, then the government is using a market-based approach to pollution reduction called
A. command-and-control regulation.
B. tradable pollution permits.
C. mitigation.
D. a carbon tax.
Answer: B
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The decision by inflation targeters to choose inflation targets ________ zero reflects the concern of monetary policymakers that particularly ________ inflation can have substantial negative effects on real economic activity
A) below; high B) below; low C) above; high D) above; low
Other things equal, when the supply of workers is scarce, one would predict that market wages would be
a. relatively high. b. relatively low. c. determined solely by factors that affect demand. d. determined outside the domain of economic theory.
In terms of microeconomic analysis, what is the function of "utils"?
A. a measurement of utility B. applies to changes in income C. a form of budget constraint D. relates to a consumers original choice
The difference between a fixed tax and a variable tax is that
A. fixed taxes can never be changed, but variable taxes can be changed. B. a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact. C. a variable tax changes when GDP changes, but a fixed tax does not change with GDP. D. a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.