When the government tries to control pollution through cap and trade, it _____
a. issues permits that enables the owners of the permit to pollute
b. allows polluting firms to produce public goods that reduce pollution
c. levies tax on the polluting firm
d. gives subsidies to the firms who adopt clean production technologies
e. takes legal actions against the firms who pollute beyond the specified level
a
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The constant growth rate rule for money, as initially proposed by Milton Friedman, has been adjusted ________
A) to take the problem of moral hazard in account B) to account for the role played by adaptive expectations in policy formation C) for the difference between real and nominal economic variables D) to allow for possible short-run movements in velocity
In the short run, a competitive firm has a marginal product of labor, MPL = 5L-0.5. The output price is $10 per unit and the wage is $7 per hour. The short-run labor demand curve for the firm is
A) 5L-0.5. B) 15L-0.5. C) 35L-0.5. D) 50L-0.5.