The socially optimal rate of growth is:
a) Zero
b) Negative
c) Where the marginal social benefit = the marginal social cost
d) Total social costs are minimized
Answer: c) Where the marginal social benefit = the marginal social cost
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Recessions are periods of:
A) leftward shifts in labor supply. B) rightward shifts in labor supply. C) rightward shifts in labor demand. D) leftward shifts in labor demand.
The phrase "decreasing marginal benefit" means that
A) the more you consume of the product, the less total benefit you derive. B) the marginal cost will be increasing as you consume more of a good. C) each additional unit of a good you consume gives you less additional benefit than the previous unit. D) Both answers A and B are correct. E) Both answers A and C are correct.
Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the firms will adopt process ________, and a total of ________ tons of smoke will be emitted each day.
A. B; 16 B. A; 18 C. D; 8 D. C; 12
Mutual interdependence would tend to limit control over price in which market model?
A. Pure competition B. Monopolistic competition C. Oligopoly D. Pure monopoly