Economists typically suggest three choices that allow a polluter to decide how to absorb most, or perhaps all, of the social costs of its actions, which are
A) continuing to overproduce the good, lowering the price of the good, or cutting output.
B) reducing the pollution-causing activity, changing production techniques, or paying a price to pollute.
C) installing pollution abatement equipment, paying to pollute, or just ignoring the issue.
D) paying a pollution tax, continuing to use existing production techniques, or continuing the polluting behavior without regard to the social implications.
Answer: B
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How did the U.S. government make the American public have confidence in the nation's currency in the 1870s?
(A) The government permitted state-chartered banks to issue currency. (B) The government established the First Bank of the United States. (C) The government backed the currency with cotton. (D) The government adopted the gold standard.
If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium?
A. The insurance companies take advantage of the increased demand and collude. B. Less healthy people join the pool of insured and hence increase the risk and the premium. C. Medical services are more expensive because of increased demand. D. None of the statements is correct.
Use a pizza pie analogy to discuss the trade off between income equality and economic efficiency
What will be an ideal response?
What is the relationship between the marginal revenue curve and the demand curve for a single-price monopoly?
What will be an ideal response?