Which of the following is TRUE of the European Union's cap-and-trade program?
A) Firms are taxed based on the their pollution levels.
B) Firms are forced to shut down when they exceed their pollution limits.
C) Governments subsidize firms to develop devices to reduce pollution.
D) Firms can trade pollution permits to meet their pollution limits.
D
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A decrease in the tax rate will ________ the disposable income of households and ________ the size of the multiplier effect
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase E) increase; not change
If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.