The view that the choices consumers face should be limited for their own good is known as ________

If unemployment is a problem, the Fed could ______ bonds and ______ the reserve requirement.

A. buy; increase B. buy; decrease C. sell; increase D. sell; decrease

What are marketable permits? Suppose there are two firms in an area, each emitting tons of sulfur. The government decides on a target level of 200 tons of sulfur, and gives each firm a permit to emit 100 tons of sulfur

Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500. Firm B has an older plant, so it will cost Firm B $1,000 to reduce emissions by 100 tons. What will occur with marketable permits?