If the government has enough knowledge about a market and the damage it causes through pollution, it can force the socially optimal output
A) through an emission fee.
B) using a ban on pollution.
C) by deregulating to eliminate the monopoly.
D) All of the above.
A
You might also like to view...
A barter exchange
A) always takes place without greed on behalf of the trading parties. B) takes place without money. C) tends to have lower transaction costs compared to exchanges using money. D) is characterized by all of the above.
Asymmetric information occurs when
A) buyers and sellers are not equally informed about the true quality of what they are buying and selling. B) banks face an adverse selection problem with their borrowers. C) borrowers covertly engage in activities that increase the probability of poor performance. D) All of the above.
Which of these changes is likely to follow when the Fed purchases U.S. government securities? a. Aggregate demand will decrease
b. The demand for financial securities will increase. c. Rate of interest will increase. d. Planned investment spending will increase. e. Real GDP will decrease.
(Last Word) A market-based system of buying and selling human organs for transplant would:
A. reduce total health care spending. B. create a surplus of organs. C. increase the quantity of organs available for transplant. D. reduce the price of organs.