In a market for emission permits, firms that emit over their allowed limits
A. must buy more allowances through a trading system.
B. are forced to shut down.
C. are taxed by the government for the amount of emissions.
D. will sell their excess allowances through a trading system.
Answer: A
Economics
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Policy makers who believe that the costs of inflation are very high will tend to favor which of the following during an inflationary gap?
a. moderate fiscal stimulus, no monetary stimulus b. fiscal and monetary tightness c. moderate monetary stimulus, fiscal tightness d. strong fiscal and monetary stimulus
Economics
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be bowed in. C) be a straight line. D) not exist.
Economics