The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that
a. all firms reduce pollution equally and fairly.
b. firms that are able to clean up at lowest cost do so; others don't.
c. large polluters clean up the most, which is always lowest cost.
d. small polluters clean up the most, which is generally the cheapest.
b
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In the United States, where there is a permanent increase in the money supply, exchange rate overshooting is caused in part by:
a. higher domestic interest rates. b. an appreciation of the dollar. c. lower foreign interest rates. d. a depreciation of the dollar.
The unemployment rate that is typically reported in the media is ________
A) based on a survey from 150,000 business establishments on weekly earnings, number of workers and hours worked B) computed every three months C) based on a survey of 60,000 households D) reported by the Treasury Department E) none of the above