The U.S. government offers tax credits on hybrid automobiles. This tax credit:
A. reduces the personal cost of abatement of car pollution.
B. encourages people to drive and pollute more.
C. increases the demand for gasoline.
D. All of these
Answer: A
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What distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm in the short run?
a. The size of the factory is fixed. b. There are no fixed costs. c. Output is not variable. d. The number of workers used to produce the firm's product is fixed.
Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar
The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate. A) appreciated; because there has been no change B) depreciated; a decrease C) appreciated; a decrease D) appreciated; an increase E) depreciated; an increase