Which of the following statements is correct about a market in which pollution is emitted?
a. Both corrective taxes and pollution permits move the market toward the social optimum.
b. Corrective taxes move the market toward the social optimum, but pollution permits do not move the market toward the social optimum.
c. Pollution permits move the market toward the social optimum, but corrective taxes do not move the market toward the social optimum.
d. Neither corrective taxes nor pollution permits move the market toward the social optimum.
a
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The period for which the Consumer Price Index is defined to equal 100 is called the
A) base period. B) starting point. C) beginning period. D) zero period. E) reference base period.
If the labor supply curve is upward-sloping, an adverse supply shock causes ________ in employment and ________ in the real wage
A) no change, a decrease B) a decrease, a decrease C) a decrease, no change D) a decrease, an increase E) an increase, an increase