Assuming that the marginal social benefit (MSB) of environmental quality is known, then
a. theMSB represents the demand for environmental quality
b. total social benefits (TSB) of abatement, A1, can be captured as an area under the MSB up to A1
c. incremental benefits are measured as an area under the MSB between the pre- and post-policy abatement levels
d. all of the above
e. none of the above
d. all of the above
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When the WTO met in Seattle to initiate a further move towards free international trade, thousands of activists met
A) in order to promote the WTO's goals of "Trade-not Aid." B) in order to laud the WTO policy orientation which would bust local monopolies and therefore help ordinary relatively poor consumers everywhere. C) in order to laud the WTO policy of disallowing government sweetheart deals, which typically meant that corrupt governments subsidized their in-laws' conglomerates on the backs of poor taxpayers. D) in order to support the WTO efforts of bringing about a universal shift of resources in poor countries to higher efficiency and productivity uses, which would raise the real incomes of everyone. E) in order to protest WTO free trade policies that they believed hurt workers.
Behavioral economists have discovered that
A) transitivity of preferences always holds, even in animals. B) the law of demand does not hold in controlled experiments. C) transitivity of preferences does not always hold, especially for young people. D) reflexivity of preferences is not true.
Phantom capital gains occur when _____
a. an asset increases in real terms, but not in nominal terms b. an asset is constant in real terms, but increases in nominal terms c. an asset decreases in real terms and decreases in nominal terms d. an asset is purchased to be used upon an individual's death
Classic Programs has purchased distribution rights for two television programs that are ready for syndication. One series, The Detectives, was enormously popular during its prime time run and will command a large rental fee
The second series, Kittie and Alma, was a poor parody of a popular series. Kittie and Alma is not expected to be in demand for syndication. The managers at Classic Programs feel that there are only two legitimate bidders for the two series. One bidder is a large independent television station that is carried across the country by cable TV companies. The other bidder is a youth oriented pay TV network called Kidwork. The independent station and Kidwork are rarely carried by the same cable companies, so that a successful bid by one has almost no impact on the willingness of the other to show the programs. Based upon previous experience, Classic estimates the following reservation prices for each bidder. Bidding is for the right to show the programs on an unlimited basis. Independent Station Kidwork The Detectives 100,000 120,000 Kittie and Alma 15,000 8,000 a. Assuming that Classic's managers set separate prices for the two programs, what is the most profitable pricing strategy? (Because of information that is shared within the industry, different prices for the two bidders are impossible.) How much revenue will be earned? b. Classic's managers are considering bundling the two programs under a single price. Is bundling feasible in this instance? Why or why not? If so, what should the bundled price be? What will total revenue be?