In a market for emission permits, firms that emit below their allowed limits
A. will sell their excess allowances through a trading system.
B. are taxed by the government for the amount of emissions.
C. will buy even more allowances through a trading system.
D. receive a subsidy for the amount of emissions.
Answer: A
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The table above shows four methods for producing 10 computer desks a day. If the cost of a worker is $100 a day and the cost of capital is $100 a day, the method that is economically efficient is ________
A) C B) B C) B, C, or D D) A
A perfectly competitive firm initially is earning zero economic profit. Then, a decrease in demand for the firm's product occurs. Of the following, in the long run which action listed below is the firm most likely to take?
A) Increase the quantity it produces. B) Increase its advertising to increase the demand for its product. C) Exit the market. D) Increase the size of its plant.
A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many meals can the family buy if they do not buy any gasoline?
a. 8 b. 16 c. 24 d. 32
The right decision about what to produce and who to trade with happens:
A. governments from different countries get together to decide on trade. B. only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option. C. almost entirely by market decisions automatically. D. when governments publish comparative advantage numbers.