Reference no: EM13859023
1. From an economist's perspective, an important consideration for policies to address global warming is:
The market for recyclable inputs
The supply and demand for recycled products
The marginal cost and marginal benefit of the policies
A lawsuit that can arise from the enactment of the policies
2. When a producer cannot get all consumers of their product to pay for enjoying it, such as in the case of a fireworks display, then we'd have a demand-side market failure.
True
False
3. In a well-functioning cap-and-trade system for pollution rights, the right to pollute will go to those who are able to acquire the largest net benefit from using the scarce resource "clean air".
True
False
4. Which of the following does not illustrate the asymmetric information problem:
Ordinary financial investors do not know the motivations of financial advisers
Ordinary customers do not know how sanitarily the food is prepared in a restaurant
Ordinary stock-buyers do not know what will happen to the stock's price next week
Ordinary car buyers do not know the actual quality of the various cars in the dealer's lot
5. Better Business Bureaus in various cities exist partly in order to try to deal with inadequate buyer information about sellers.
True
False
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: From an economist's perspective, an important consideration for policies to address global warming is: When a producer cannot get all consumers of their product to pay for enjoying it, such as in the case of a fireworks display, then we'd have a dema..
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