The relationship between the producer price index (PPI) and the consumer price index (CPI) is such that, in the short run
A. the PPI usually increases before the CPI.
B. the CPI and the PPI usually move in opposite directions.
C. the CPI usually increases before the PPI.
D. the CPI and the PPI usually move simultaneously.
Answer: A
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A. 100 B. 200 C. 300 D. 700
A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) it discourages firms from implementing cost-effective pollution control technology. D) that it does not eliminate pollution completely.
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