A chemical-producing firm is located just upstream from an electric power plant. Instead of the more expensive procedure of burying its wastes, the chemical-producing firm begins dumping its waste into the stream. This causes increased variable costs for the power plant, which uses water from the stream to cool its turbines. The chemical producer's dumping of waste into the stream causes
A. Only the MC of the power firm to shift downward.
B. Only the MC of the chemical firm to shift upward.
C. The MC of the chemical firm to shift downward and the MC of the power company to shift upward.
D. The MC of the chemical firm to shift upward and the MC of the power company to shift downward.
Answer: C
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Marginal benefit
A) increases as more of a good is consumed. B) decreases as more of a good is consumed. C) is the total benefit from all units consumed. D) is constant as more of a good is consumed. E) is the gain to the producer of producing and selling one more unit of a good.
John Rawls' theory of justice does not take into account the disincentive effects of redistributive programs
a. True b. False
According to the Economic Freedom of the World measure, between 2000 and 2010 the economic freedom of the United States
a. declined and its rank fell from third to tenth during this period. b. increased, and the U.S. became the freest economy in the world during this decade. c. was largely unchanged and the U.S. remained the third freest economy in the world, behind only Hong Kong and Singapore. d. decreased, but the U.S. was still the freest economy in the world in 2010.
The CPI is a measure of the overall cost of
a. the inputs purchased by a typical producer. b. the goods and services purchased by a typical consumer. c. the goods and services produced in the economy. d. the stocks on the New York Stock Exchange.