Economists generally favor the use of tradable emission allowances to reduce pollution. However, the use of these allowances has been criticized by some environmentalists. Which of the following describes this criticism?
A) Some environmentalists believe that Pigovian taxes are a more efficient way to reduce pollution.
B) Some environmentalists oppose allowances on legal grounds; they believe the use of allowances is unconstitutional.
C) Some environmentalists believe that the price of allowances is often too high for consumers to afford.
D) Some environmentalists believe the allowances give firms a license to pollute.
D
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In the short run, if a firm is suffering a loss, it should
a. always shut down to prevent further losses. b. continue to operate as long as it can recover variable cost. c. continue to operate as long as it can recover fixed cost. d. continue to operate if marginal cost is below average total cost.
Collateralized debt is also know as
A) unsecured debt. B) secured debt. C) unrestricted debt. D) promissory debt.
Suppose a shortage for good X exists. Given this information, we know that
A) the price of good X will tend to rise toward the equilibrium level. B) the price of good X will tend to fall toward the equilibrium level. C) a government price floor should be imposed above the current price so that the market can work more effectively. D) a government price ceiling should be imposed above the current price so that the market can work more effectively.
A firm that shuts down in the short run experiences losses equal to its
A) total fixed costs. B) average variable costs. C) total variable costs. D) total variable costs minus its total fixed costs.