The government can aid in reducing pollution by using a policy of cap-and-trade, which means that
A) polluters are taxed on the amount of pollution they discharge.
B) emission charges are established by the government.
C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution.
D) only some producers pollute and the others go out of business.
C
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In the loanable funds market, which of the following is an example of investment demand?
A) Mark buying rare gold coins B) Scott purchasing a rookie-year baseball card for last year's World Series MVP C) Mary buying stocks for her retirement portfolio D) Brian, owner of Bryan Games, purchasing computers to enhance the production of games E) George purchasing United States savings bonds for his son's college fund
If a 1% change in the price of a good causes a 1% change in the quantity demanded, the good has an elasticity of demand:
A) equal to 0. B) less than 1. C) equal to 1. D) greater than 1.