Multiple Choice
A government currently uses price controls to hold down the price of zinc, an exhaustible resource.If price controls are removed,
A) production of zinc will probably fall.
B) zinc mines with high marginal cost of production will probably stop producing.
C) consumers of zinc will probably want substitutes for zinc.
D) income will probably be redistributed from zinc producers to zinc consumers.
Correct Answer:

Verified
Correct Answer:
Verified
Q79: Pollution is an externality, this means<br>A)the free
Q80: Emissions permits allow polluters to pay for
Q81: Direct controls have traditionally been used heavily
Q82: Environmental problems occur exclusively in capitalist economies.
Q83: If one adopts a pure free-market approach
Q85: The socialist countries of Eastern Europe have<br>A)fewer
Q86: If a resource is in fact becoming
Q87: Based on economic theory, which statement is
Q88: Emissions permits might be called an allowance.
Q89: Increasing GDP generally causes increases in problems