The efficient amount of pollution control is:
A. always zero.
B. the amount for which the marginal social benefit equals the marginal social cost of pollution.
C. always a 100 percent abatement.
D. the amount for which the total social benefit equals the total social cost of pollution.
Answer: B
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Refer to Figure 22-2. Based on the per-worker production function above, if the economy raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked increase?
A) $150 B) $1,850 C) $2,000 D) $5,000
In New York, a welfare recipient can earn $90 per month without having her benefits reduced. Beyond $90, benefits are reduced by 57 cents for every dollar of earnings. Consider Jackie, a resident of New York, who can earn $10 per hour. If she does not work at all, she is eligible for welfare benefits of $577.
(A) If she works 10 hours, how much are her work earnings, how much is her welfare benefits, and how much is her total income? (B) After Jackie works a certain number of hours, she does not receive any benefits at all. What is that number of hours?
The demand curve a monopolist faces:
a. is more elastic than a perfectly competitive firm's demand curve. b. is the market demand curve. c. is as elastic as a perfectly competitive firm's demand curve. d. is not affected by the prices of complements. e. will not shift in response to a change in consumer tastes.
Despite both monetary and fiscal policy actions, real GDP declined at an annualized rate of 6% during the last quarter of 2008 and the first quarter of 2009
a. True b. False Indicate whether the statement is true or false