Which of the following is not a characteristic of pollution permits?
a. Prices are set by supply and demand.
b. Allowing firms to trade their permits reduces the total quantity of pollution beyond the initial allocation.
c. Real-world markets for pollution permits include sulfur dioxide and carbon.
d. Firms for whom pollution reduction is very expensive are willing to pay more for permits than firms for whom pollution reduction is less expensive.
b
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An increase in the general price level is termed:
a. the Consumer Price Index. b. inflation. c. deflation. d. stagflation. e. nominal pricing.
The marginal propensity to save (MPS) is computed as the change in:
a. savings divided by the change in saving. b. savings divided by the change in disposable personal income. c. saving divided by the change in GDP. d. None of these.