All of the following are consequences of an economy operating above its potential level except:

To be counted as employed by the BLS, in the week before the survey the person must have worked for pay

A) at least 1 hour. B) at least 5 hours. C) more than 20 hours. D) 40 hours. E) None of the above is right because the BLS counts as employed anyone who works volunteer hours at a non-profit institution.

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.