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.
Ans: a. provide polluters with an incentive to take the marginal social cost of pollution into account.
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People hold money as opposed to financial assets because money
A) earns interest. B) earns no interest. C) is perfectly liquid. D) earns a higher return than other financial assets.
If net exports are positive, then
a. net capital outflow is positive (indicating an inflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners. b. net capital outflow is positive (indicating an inflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans. c. net capital outflow is negative (indicating an outflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners. d. net capital outflow is negative (indicating an outflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.