The Clear Plastic Company's plant discharges large quantities of toxic chemicals into some groundwater sources. Residents in the surrounding area have higher medical bills because of Clear Plastic's pollution. As long as Clear Plastic Company is allowed
to emit pollution and ignore any externalities, the firm will
A) overproduce.
B) under produce.
C) charge too high a price for its output.
D) be absorbing the full value of its social costs.
Answer: A
You might also like to view...
A technological breakthrough in using photons for computers will increase the productivity of those working with computers a hundredfold. You would expect this breakthrough to shift the
A) marginal product of labor curve up and to the right, raising the quantity of labor demanded at any given real wage. B) marginal product of labor curve down and to the left, reducing the quantity of labor demanded at any given real wage. C) labor supply curve up, reducing the quantity of labor demanded at any given real wage. D) labor supply curve down, raising the quantity of labor demanded at any given real wage.
The in-kind Medicare transfer increased real incomes of the aged by 17 to 40 percent
Indicate whether the statement is true or false
Sue just quit her job as a librarian to pursue her lifelong dream of getting a job as a teacher. Sue would be considered:
A. frictionally unemployed. B. structurally unemployed. C. seasonally unemployed. D. Sue is not in the labor force.
What is the mission of the International Monetary Fund (IMF)?
What will be an ideal response?