Issuing marketable emission allowance permits to polluting firms will result in those firms polluting more than would be desired by the benevolent social planner
Indicate whether the statement is true or false
FALSE
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A budget deficit is best defined as the
a. shortage of spending power created by a government spending cut. b. shortage of spending power created by a tax increase. c. accumulation of past debt that has not been covered by taxes. d. amount by which a government's expenditures exceed receipts during a specific time period.
Short-run costs that depend on the level of output are
A. total fixed cost only. B. total costs only. C. total variable costs only. D. both total variable costs and total costs.
Business cycles in the United States after World War II have been
a. more severe than before the war. b. less severe than before the war. c. the same as the pre-war cycles. d. easier to predict than the pre-war cycles.
In a competitive market, if the market price is equal to the minimum point of the firm's ATC curve, the firm may seek to earn economic profits by
A. Decreasing production costs through technological improvements. B. Decreasing price. C. Producing at the rate of output where price equals demand. D. Increasing price.