Like negative externalities, tradable permits are useful in allocating common resources because:
A. the depletion of common resources imposes a negative externality.
B. the problem present in both is overconsumption.
C. the socially optimal quantity is not the same as the individual consumers in either case.
D. All of these statements are true.
D. All of these statements are true.
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For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________
A) upward; upward B) upward; downward C) downward; upward D) downward; downward
Government debt is different from individual debt because
A) the government can always tax to reduce it. B) the government cannot declare bankruptcy. C) the government does not need to pay interest. D) the government can decide the interest rate.
Briefly explain why people make choices
What will be an ideal response?
U.S. automakers have an interest to make it more difficult for European competitors to locate assembly plants in Canada or Mexico and thereby ship finished automobiles to the United States duty-free. This is an example of
A) trade deflection. B) trade diversion. C) quotas. D) rules of origin.