Which of the following statements is TRUE about the optimal quantity of pollution?
A) It equals zero.
B) Pollution abatement should continue up to the point where marginal cost equals the average total cost.
C) Trade-offs exist between producing a cleaner environment and producing other goods and services.
D) Firms should be allowed to determine the profit-maximizing amount of pollution abatement.
C
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Peanut butter and jelly are complements for many consumers. Consider the market for peanut butter. If there is an increase in the price of jelly,
A) there is a shift in the supply curve for jelly. B) the price of peanut butter rises. C) the quantity of peanut butter increases. D) the demand curve for peanut butter does not shift; instead there is a movement along it. E) there is a movement along the supply curve of peanut butter.
Firms that issue callable bonds have the option of repaying the principal to the bond buyers before the stated maturity date for the bonds. Firms may call their bonds before maturity in order to avoid making some of the coupon payments
Should we expect the price of a callable bond to be higher or lower than the price of a non-callable bond that has the same coupon payment, principal, and effective yield? A) Price of the callable bond should be higher B) Price of the bonds should be the same C) Price of the callable bond should be lower D) We need to know the year in which the bond is called in order to compare the prices
Indemnity coverage does not include:
a. compensation toward the cost of medical services in the event of illness. b. compensation toward the cost of medical services for routine health issues. c. compensation toward the cost of medical services in the event of injury. d. both b. and c.
The GDP Price Index and the Consumer Price Index measure prices of the same set of goods
a. True b. False