The advantages of emissions permits over taxes is/are that
A. it increases uncertainty about the quantity of pollution that will be emitted.
B. environmental authorities decide on an emissions ceiling in advance of issuing permits.
C. pollutants can be raised to levels that have adverse effects on health.
D. firms whose marginal cost of reducing emissions are lower than the market price of permits will find it more profitable to buy additional permits than to reduce their emissions.
Answer: B
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Greater availability of lower-cost drugs will tend to shift the ________ curve for medical services to the ________
A) demand; right B) supply; left C) supply; right D) demand; left
An exporter can hedge against the possible decline in a foreign currency by purchasing
A) put options on the currency. B) call options on the currency. C) the currency on the spot market. D) currency on forward contracts.
Refer to the table below. The perfectly competitive firm has a random demand with a 25 percent chance of being $5 and a 75 percent chance of being $9. What quantity should the firm produce to maximize its expected profit?
The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.
A) 110
B) 100
C) 130
D) 120
According to the text, college students give higher evaluations to professors who are:
a. young and attractive. b. experienced and highly qualified. c. interactive and easily approachable. d. strict and disciplined.