Do economists tend to favor a system in which power plants buy and sell the right to pollute in the form of emission credits?
A. Yes; they encourage all firms to cut pollution by the same percentage.
B. No; it is possible for some firms to do nothing if they simply buy enough credits.
C. Yes; they believe that such a proposal would achieve a level of pollution reduction with the lowest cost to society.
D. No; these programs are ineffective because they encourage major polluters to free ride on the efforts of others.
Answer: C
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Over the last 40 years in the U.S
a. output and real wages have increased, while the capital-to-labor ratio has remained constant. b. output, real wages, and the capital-to-labor ratio have all increased. c. output has increased while real wages and the capital-to-labor ratio has remained constant. d. output and real wages have increased, while the capital-to-labor ratio has fallen.
The payments to owners of capital include
a. interest and profits. b. debt and taxes. c. wages and salaries. d. expenses and bonuses. e. All of the above are correct.
Refer to the graph above. If the price is P3, then total revenue is represented by areas:
A. E + F + G. B. B + C + D + E + F + G. C. A + B + C + D + E + F + G. D. B + C + D.
An example of a good that is excludable is:
A. broadcast television. B. an outdoor sculpture visible from the street. C. an aerial fireworks display. D. a television set.