Tradable emissions permits are used to:
a. reduce sulfur dioxide emissions by requiring firms to pay a pollution tax.
b. encourage firms to reduce sulfur dioxide emissions by allowing the sale of excess permits.
c. decrease consumption as the producer passes the full cost of the permit onto the consumer.
d. impose a tax on SO2 emissions that is paid by the firm and is a source of tax revenues for the federal government.
Ans: b. encourage firms to reduce sulfur dioxide emissions by allowing the sale of excess permits.
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Typically, the greater the specialization of resources
A) the less production that takes place. B) the greater the bow of the production possibilities curve. C) the poorer the country becomes. D) the greater the unemployment in the country.
Monopolistic competition describes a market with:
A. many firms that sell goods and services that are standardized. B. many firms that sell goods and services that are similar, but slightly different. C. few firms that sell goods and services that are standardized. D. few firms that sell goods and services and some barriers to entry.