The Emission Trading Scheme of the European Union
A) created a market for pollutants.
B) sets a cap on the amount of pollutants in each country.
C) allowed firms to benefit from emitting pollutants.
D) sets the amount of per-unit tax on each pollutant.
Answer: A
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Economists define liquidity as
A) the difference between the return on the asset and the return on a long-term U.S. Treasury bond. B) the fraction the asset makes up of an investor's portfolio. C) the ease with which an asset can be exchanged for money. D) the difference between the total demand for an asset and the total supply of the asset.
Saving is a leakage from the circular flow. Why didn't the classical economists think saving might cause consumption expenditures to fall short of total output?
What will be an ideal response?