The process of a government intervening to maintain the value of their exchange rate after shock to their economy is known as
A) sterilization.
B) preventative therapy.
C) beggar-thy-neighbor policies.
D) the liquidity effect.
A
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The optimal level of air quality
a. is 100 percent, which creates a pollution-free environment b. is smaller the lower the marginal social cost of air quality c. is greater the lower the marginal social benefit of air quality d. is greater the lower the marginal social cost of air quality e. is smaller the greater the marginal social benefit of air quality
A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
A. The pollution will be created by those least willing and able to pay the damages. B. The pollution will be created by those most willing and able to pay for the right to pollute. C. The funds collected by the government will be enough to compensate any individuals harmed by the pollution. D. Pollution will increase from zero to 1,000 units per day.