In a well-functioning cap-and-trade system for pollution rights, society benefits because pollution will be brought down to insignificant levels.

a. true
b. false


Answer: b. false

Economics

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The equilibrium price under an import quota is below the price that occurs with free trade

Indicate whether the statement is true or false

Economics

If each 10 percent increase in the price of gasoline reduces by 2 percent the quantity purchased, the price elasticity of demand for gasoline is

A) .2. B) 5. C) 8. D) 12. E) 20.

Economics

Strategic behavior

A) is found in competitive markets. B) is a form of product differentiation. C) involves the interdependence of actions. D) is only present when there are price fixing agreements.

Economics

List and describe three of the five different lags that can occur which may impede the effectiveness of the use of fiscal policy

Economics