Which of the following is not a reason why marketable permits may fail to achieve efficiency?
a. Some firms can reduce emissions at a lower cost than other firms.
b. A market with a small number of buyers and sellers.
c. Imperfect information exists on the value of a permit.
d. There are concerns about the value of permits in the future.
a
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Import quotas
A) are the same as tariffs. B) set the maximum quantity of a good that can be imported. C) are not used by the United States. D) set the minimum percentage of the value of a product that must consist of imported components.
A tax imposed on the buyers of a good will raise the
a. price paid by buyers and lower the equilibrium quantity. b. price paid by buyers and raise the equilibrium quantity. c. effective price received by sellers and lower the equilibrium quantity. d. effective price received by sellers and raise the equilibrium quantity.