Suppose the marginal social cost (MSC) of abatement for particulate matter (PM) is MSC = 8 + 0.5A, where A is percent of PM removed, and MSC is in millions of dollars. Find the change in total social costs (TSC) of abatement if the abatement level increases from 12 percent to 20 percent as a result of new policy.
What will be an ideal response?
To find the change in TSC, calculate the area under the MSC curve between the two values for A, i.e., between 12 percent and 20 percent, as shown in the graph below
Now, find the area of the trapezoid as ½ h (b1 + b2) = ½ 8 (18 + 14) = $128 million. Alternatively, find the sum of the area of the top right triangle (½ * 8 * 4) and the area of the lower rectangle (8 * 14), which equals $128 million.
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One of the components of the human development index is
a. the percentage of the population who are high school graduates. b. the average daily intake of protein. c. life expectancy at birth. d. the number of doctors per hundred people in the population.
The clearest sign of inflation would be a(n)
a. increase in the price level. b. increase in the quantity of total final output. c. decrease in the quantity of total final output. d. simultaneous increase in both output and prices.
Which of the following decisions best reflects marginal thinking?
a. deciding to get married b. starting a new business c. attending graduate school d. switching phone carriers
Price levels rarely remain the same. This implies that money is
A. an excellent medium of exchange. B. divisible. C. a good medium for measuring value. D. an imperfect medium for storing value.