Once tradable pollution permits have been allocated to firms,
a. the government controls the price of permits.
b. firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
c. the value of pollution-saving technology will be lower than the market value of a pollution permit.
d. the Coase theorem is no longer applicable as a solution to reducing pollution.
b
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The effect on the level of income of a given increase in the money stock is
a. irrelevant to the interest elasticity of money demand. b. greater the lower the interest elasticity of money demand. c. greater the higher the interest elasticity of money demand. d. None of the above
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map
Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is $30 per week. What is Bob's utility maximizing choice between these two goods? A) 4 pounds of apples and 6 pounds of oranges B) 5 pounds of apples and 5 pounds of oranges C) 10 pounds of oranges and no apples D) 15 pounds of apples and no oranges E) none of the above
Contingency fees
a. are illegal in many countries. b. are calculated as a percentage of the total damage award. c. are similar to punitive damages. d. according to some reformers, should be increased to discourage further lawsuits. b. both a and b.
The use of money as a unit of account:
a. discourages specialization and division of labor. b. inhibits the exchange of goods and services. c. makes it difficult to compare the relative values of goods and services. d. lowers information costs relative to barter. e. relies on the existence of a double coincidence of wants.