Ifinstead the NAAQS were legislated to achieve efficiency, find the efficeint abatement level(AE) for sulfur dioxide.
Suppose that the MSB and MSC of abating sulfur dioxide are as follows. Use these functions to answer parts (a) and (b) below.
MSB = 32 – 0.2A MSC= 16 + 0.2A
To achieve an efficient outcome, set MSB and MSC equal as follows:
MSB = MSC
32 – 0.2A = 16 + 0.2A
16 = 0.4A
AE = 40 units
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A) $23.50 per hour. B) $52 per hour. C) $67 per hour. D) $235 per hour.
On Thanksgiving, Jake's mother gives him a huge platter of food. If Jake were to keep eating just to please his mother (even when he really wanted to stop), his marginal utility would be:
a. the same as his total utility. b. large. c. minus one. d. positive. e. negative.
Intermediate goods are goods and services used:
a. by the ultimate user. b. by state and local governments. c. as inputs. d. both as inputs and final goods.
Items counted in U.S. GDP, but excluded from U.S. GNP, are
a. the value of the automobiles produced by a General Motors plant in Spain b. U.S. assets abroad c. income earned by U.S. citizens working in foreign economies d. a Nissan plant's output in Tennessee e. a Foot Locker's sales at its new store in Edmonton, Canada