Among the characteristics of the command-and-control approach to pollution reduction is that it is
A. easily adjusted to changes in marginal costs of pollution reduction across firms.
B. less costly than a carbon tax.
C. typically inflexible and thus quite expensive.
D. less costly than cap-and-trade systems.
Answer: C
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Assume that the graphs show a competitive market for the product stated in the question below.
Select the graph above that best shows the change in the market following a reduction in the tax placed on the suppliers in the market.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
Which of the following is an example of an implicit cost a firm might incur?
A) the opportunity cost to investors of the funds invested in the firm B) the wages paid to employees C) utility payments D) the payment for medical insurance coverage
The three major sources of economic profit are
A. risk-bearing, innovation, and exercise of monopoly power. B. risk-bearing, rent seeking, and discounting. C. innovation, invention, and speculation. D. exercise of market power, marginalization, and speculation.
Which of the following is definitely not a nonexcludable public good?
A. national defense B. elementary education C. flood control D. charitable giving E. None of the above; all are nonexcludable public goods.