When the optimal quantity of consumption is zero for a given good:
A. changing social norms is often the best solution.
B. a ban is often the best solution.
C. privatizing the good is often the best solution.
D. government provision of the good is often the best solution.
Answer: B
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What are marketable permits? Suppose there are two firms in an area, each emitting tons of sulfur. The government decides on a target level of 200 tons of sulfur, and gives each firm a permit to emit 100 tons of sulfur
Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500. Firm B has an older plant, so it will cost Firm B $1,000 to reduce emissions by 100 tons. What will occur with marketable permits?
During a deflationary period
A) the nominal interest rate is less than the real interest rate. B) the real interest rate is less than the nominal interest rate. C) the nominal interest rate does not change. D) the price level rises.
Unlike indifference curves, isoquants can intersect
Indicate whether the statement is true or false
The United States has approximately
a. 80,000 businesses. b. 5.1 million businesses. c. 12.5 million businesses. d. 28.million businesses.