It is assumed that the marginal benefit of air cleanliness falls with the degree of cleanliness since
A) the marginal cost of air cleanliness increases.
B) air cleanliness is a public good and not a private good.
C) the marginal utility of air cleanliness falls with the degree of cleanliness.
D) the generation of pollution should be considered an externality.
Answer: C
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A cost-saving innovation in a perfectly competitive industry will lead to:
A. economic profits for a few firms for a short time. B. economic profits for new firms. C. entry by new firms. D. a leftward shift of the industry supply curve.
In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics
A) adds the number of people collecting unemployment insurance from each state. B) adds the state unemployment claims reports. C) uses a survey from 60,000 households. D) adds together all the reports of layoffs from businesses. E) uses a survey from 160,000 firms.
The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore
A) widgets and McBoover devices are substitutes. B) widgets and McBoover devices are complements. C) widgets are a normal good. D) McBoover devices are a normal good.
_____ transfer the necessary information within a firm and bind the recipients to take certain actions
a. Contracts b. Decision-makers c. Owners of information d. Orders