From an economic standpoint, the amount of pollution should be
A. the amount that allows firms to maximize profits.
B. zero.
C. the amount where firms are earning a normal rate of return on investment.
D. at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
Answer: D
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As of the end of 1994, which of the countries in our survey had the largest proportion of stock held by individuals?
A) The United Kingdom B) The United States C) Japan D) Germany
A market failure occurs when:
a. the market outcome is viewed as unfair by a majority of consumers. b. a market fails to provide the good at a zero price. c. quantity demanded exceeds quantity supplied. d. the market outcome is not the socially efficient outcome. e. prices are determined by the interaction of the forces of demand and supply and not through central planning.
The value of what is produced per worker, or per hour worked, is called ____________.
a. economic growth b. human capital c. productivity d. GDP per capita
Last year a country had exports of $100 billion, imports of $70 billion, and purchased $60 billion worth of foreign assets. What was the value of domestic assets purchased by foreigners?
a. $70 billion b. $40 billion c. $30 billion d. $10 billion