Once tradable pollution permits have been allocated to firms,
a. the government controls the price of permits.
b. firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
c. the value of pollution-saving technology will be lower than the market value of a pollution permit.
d. the Coase theorem is no longer applicable as a solution to reducing pollution.
b
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Who receives the goods and services produced in the United States depends largely on
A) how income is distributed. B) what goods and services are produced. C) government redistribution. D) how the goods and services are produced.
Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the amount of domestic savings.