A pollution tax would be preferable to a system of transferable permits when
a. The marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable
b. The marginal costs of damages are steep and the marginal costs of pollution reduction are steep
c. The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable
d. The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep
e. The marginal costs of damages are elastic and the marginal costs of pollution reduction are also elastic
Ans: d. The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep
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During 2009, General Motors announced that it would close its Saturn facilities in the United States because of the foreign competition it faced. This corporate move
A) increased structural unemployment. B) increased avoidable unemployment. C) increased cyclical unemployment. D) had no impact on unemployment. E) decreased frictional unemployment.
On average, if demand is unknown and costs of underpricing are _______ than the costs of overpricing, then err on the side of_________
a. Smaller; overpricing b. Smaller; underpricing c. Larger; underpricing d. None of the above