Chapter 9: Government intervention in markets Flashcards
0
Q
Pollution permit
A
A permit sold to firms by the government, allowing them to pollute up to a certain limit.
1
Q
Indirect tax
A
A tax on spending.
2
Q
Law of unintended consequences
A
When the actions of consumers; producers and governments have effects that are unanticipated.
3
Q
Inflation
A
A persistent increase in the level of prices.
