If you burn your trash in the backyard in spite of regulations against it, then you are
A) acting economically irrationally and creating a social cost.
B) acting rationally and creating a positive externality.
C) saving landfill space and creating a social benefit.
D) avoiding the private costs associated with disposing your trash some other way and creating a social cost.
D
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A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + 0.5Q. Determine the profit-maximizing level of output.
What will be an ideal response?
Economist James Tobin developed a formal model that justifies holding ________, and it goes some way in explaining variations in the demand for ________
A) only safe assets or only risky assets, M1 B) only safe assets or only risky assets, M2 C) a mix of safe and risky assets, M1 D) a mix of safe and risky assets, M2
A $100 billion increase in government purchases would:
a. increase AD by $500 billion if MPC = 0.8. b. decrease AD by $300 billion if MPC = 2/3. c. decrease AD by $200 billion if MPC = 0.9. d. decrease AD by $40 billion if MPC = 0.4.
Refer to the above figure. Which of the following would allow society to move to point d?
A. increasing the quantity of labor B. producing efficiently C. using the best land to produce wheat and the lower quality land to produce beans D. concentrating production in wheat