Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.
What will be an ideal response?
Command-and-control regulation usually forces all pollution emitters to meet the same standards or install the same equipment, and sometimes includes outright bans. Market-based systems, such as cap-and-trade systems, use price incentives by allowing a polluter to sell excess permits to pollute, so that if it is cheap for the polluter to reduce pollution, it will sell its permits to polluters who find this more expensive. The pollution is reduced by those for whom pollution reduction is relatively cheaper.
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In 2011, real GDP in the United States was $60 per hour worked. In major European economies, real GDP averaged on $48 per hour worked. This difference is explained by the points that ________ and ________
A) Americans work the same number of hours per week as Europeans on average; Americans are less productive due to technology differences B) Americans are equally as productive as Europeans; Americans work more hours on average C) Americans take more vacations than Europeans; Americans take more sick days than Europeans D) Americans work more hours than Europeans; Americans produce more per hour than Europeans E) Americans work less hours than Europeans; Americans take less sick days than Europeans
Which of the following is a characteristic of capitalism?
a. Government ownership of all capital. b. Government decision-making is preferred to decentralized decision-making. c. Market determination of prices and quantity. d. Equality of income.
A higher exchange rate value of the dollar reduces inflation but has a contractionary effect on the economy.
Answer the following statement true (T) or false (F)
If a good is normal, its
A. Cross-price elasticity is positive. B. Income elasticity of demand is positive. C. Price elasticity of demand is positive. D. Income elasticity of demand is negative.