Firms buy and sell the right to pollute:
a. under a system of compliance standards
b. under a free market system where there is no government intervention and property rights are not well-defined.
c. under a system of transferable pollution permits.
d. under a pollution tax system.
c
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Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds
Your textbook argues that the phrase "the distribution of income" is misleading because
A) income is not created in a market economy, only wealth is. B) it suggests that income is not earned in process of its creation and can simply be parceled out any which way policymakers wish. C) income in the form of wages and salaries can be negative, and therefore cannot be distributed. D) it is only related to ethical rather than economic considerations.