When using the economic efficiency approach to controlling air and water pollution, the government
a. forces each firm to produce emissions in the most cost efficient manner irrespective of its cost structure
b. offers each firm the flexibility to reduce emissions in the most cost effective manner, given its unique cost structure
c. offers each firm the option of choosing between the cost minimizing emission level and the profit maximizing emission level
d. provides each firm with some fixed rules and then requires them to maximize profits given these fixed rules
e. offers each firm the option of using marginal cost pricing and average cost pricing when determining the optimum emissions levels
B
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The long-run cumulative dynamic multiplier
A) cannot be calculated since in the long-run, we are all dead. B) is the sum of all individual dynamic multipliers. C) is the coefficient on Xt-r in the standard formulation of the distributed lag model. D) is the difference between the coefficient on Xt-1 and Xt-r.
Which of the following is an example of an adverse supply shock?
a. a decrease in the money supply b. a tax cut c. a worldwide drought d. decreased government spending
Over a given period of time, if imports are greater than exports, the result is
A. A trade deficit. B. An embargo. C. A trade surplus. D. A trade war.
Derived demand is a demand for
A. final goods and services. B. products. C. resources. D. goods produced by perfect competitors.