The assumption of imperfect information is critical to

A) the old Keynesian and all New Classical approaches.
B) all New Classical approaches.
C) the Friedman, Phelps, and Lucas New Classical approaches.
D) the real business cycle approach.

C

Economics

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Tradable emissions permits:

a. provide polluters with an incentive to take the marginal social cost of pollution into account. b. are a form of subsidy. c. give consumers an incentive to buy from environmental-friendly firms. d. are a type of transaction cost.

Economics

Fred's income has just risen from $940 per week to $1,060 per week. As a result, he decides to purchase 9 percent more steak per week. The income elasticity of Fred's demand for steak is

A) 0.75. B) 0.90. C) 1.00. D) 1.33.

Economics