Direct controls
A. have not been tried in practice, but work in theory.
B. have been the main instrument used by the United States when dealing with polluting activities.
C. achieve more success than pollution charges.
D. achieve more success than pollution allowances.
Answer: B
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a. harmed; benefited b. benefited; harmed c. harmed; either benefited or harmed, d. depending on consumption patterns not affected; harmed
For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false