Pollution taxes are more efficient in cleaning up the environment than direct controls. What is not an advantage of direct controls? a. They are useful where dependable metering devices are not available or prohibitively costly to install.
b. They are useful if it is decided to prohibit the substance altogether.
c. They are most useful in centrally planned economies.
d. They are useful standby mechanisms.

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out