Because producers do not bear the external cost of pollution,
A) private production exceeds the economically efficient level.
B) the economically efficient level of production is achieved.
C) private production is below the economically efficient level.
D) the market price for the product being produced by the pollution-generating company is too high.
A
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If the Japanese government enters the foreign exchange market and sells yen to maintain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate C) appreciate; depreciate D) appreciate; appreciate
Holding other things constant, if the Japanese Yen, depreciates, it makes the Japanese products
a. Less attractive to US customers b. More attractive to US customers c. Neither more nor less attractive to US customers d. None of the above
The current demand for automobiles would decrease if
a. the price of gasoline fell. b. consumer income rose. c. consumers suddenly believed the price of automobiles would be sharply lower in the near future. d. consumers suddenly believed the price of automobiles would be sharply higher in the near future.
If the demand of a good is inversely related to income, it must be
A) a bad good. B) an inferior good. C) a normal good. D) an everyday product.