Refer to the above figures. A negative externality exists that has not been corrected. Price and quantity will be
A) P1 and Q1.
B) P2 and Q2.
C) P3 and Q3.
D) P4 and Q4.
A
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How do depository institutions create liquidity, pool risks, and lower the cost of borrowing?
What will be an ideal response?
Refer to Table 17-2. The marginal revenue product of labor from the third unit of labor is
A) $5,460. B) $1,560. C) $1,260. D) $780.
Using productive resources to make capital goods requires that we
A) get everyone to agree on the best use of those resources. B) get government approval of our plan to make capital goods. C) forgo some level of current consumption. D) prove that the existence of the capital goods will not cause any environmental damage.
As society is near total pollution abatement
A) the marginal cost to society falls. B) the marginal cost to society rises. C) the marginal cost to society equals the marginal benefit to society. D) the marginal cost to society falls but then rises.