Which of the following statements about pollution or pollution control is TRUE?
A. The optimum amount of pollution abatement is where the total benefits of pollution abatement equal the total costs of pollution abatement.
B. Private costs of pollution usually exceed social costs.
C. A tax to reduce pollution levels should be based on the economic damages rather than on the absolute amount of pollution.
D. A nationwide uniform tax on emissions is the appropriate way to reduce pollution levels.
Answer: C
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A constant differential between the interest rates of two countries over different terms to maturity implies that future changes in the exchange rate are expected to occur at a(n) ________ rate
A) constant B) increasing C) decreasing D) None of the above
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, her marginal propensity to consume out of wealth is
A) 0.025. B) 0.033. C) 0.075. D) 0.10.
On June 3, 2005, it cost 1.22 U.S. dollars to buy 1 euro. How many euros did it take to buy 1 U.S. dollar?
A. 0.82 euros B. 0.88 euros C. 1.22 euros D. 88 euros
Graphically, what is the main difference between the measure of income elasticity of demand as opposed to the measure of price elasticity of demand?
What will be an ideal response?