Under a system of marketable pollution permits:
A. pollution will increase.
B. firms may trade the right to pollute a certain amount.
C. firms can only buy the right to pollute from the government.
D. the government is not involved.
Answer: B
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In the Keynesian model, portfolio decisions of individuals determine the
A) inflation rate. B) money supply. C) interest rate. D) GDP.
When those on the informed side of a market self-select, the problem of __________ occurs
a. natural selection b. external benefits c. adverse selection d. the winner's curse e. the common pool
Which of the following will most likely reduce the natural rate of unemployment?
a. an increase in the minimum wage b. an increase in unemployment benefits c. an increase in the proportion of prime-age workers (35-54) as a share of the labor force d. an increase in the labor force participation rate of teenagers
When the labor supply curve is inelastic:
A. the percentage change in the quantity of labor supplied is less than the percentage change in the wage. B. the percentage change in the quantity of labor supplied equals the percentage change in the wage. C. employers cannot lower wages without losing all their workers. D. the percentage change in the quantity of labor supplied exceeds the percentage change in the wage.