Answer to Question #189239 in Macroeconomics for James

Question

QUESTION 13

A pollution charge gives a profit-maximizing firm an incentive to:

1. Work harder.
2. Hire more workers.
3. Hire fewer workers.
4. Determine ways to reduce its emissions.
5. Determine ways to increase its emissions.

QUESTION 14

Compared with a command-and-control regulation, a pollution tax:

1. Actually increases pollution.
2. Reduces pollution in a more flexible, expensive way.
3. Reduces pollution in a less flexible, cheaper way.
4. Reduces pollution in a more flexible, cheaper way.
5. Wins more hearts. 

QUESTION 15

Buying and selling the marketable pollution permits will determine:

1. Exactly which firms reduce pollution and by how much.
2. Exactly which firms reduce pollution, but has no impact on the amount.
3. The amount of pollution reduction, but cannot allocate the reduction between firms.
4. Which consumers benefit.
5. How much tax revenue the government will collect.

Answer 1

13.Determine ways to reduce its emissions.

14.Reduces pollution in a more flexible, expensive way.

15.Exactly which firms reduce pollution and by how much.