In a situation where there is no incentive to cut pollution because it will make domestic firms less competitive, it will improve world welfare if:
a. nations impose tariffs on polluters.
b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws.
c. there is a ban on production until we can scientifically solve our pollution problems.
d. we allow the market to work in this case.
Answer: b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws.
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A. The movement of taxpayers to higher tax brackets because of rising prices. B. A common problem in the United States. C. An inflation rate in excess of 20 percent, lasting at least one year. D. An inflation rate in excess of 200 percent, lasting at least one year.