According to economic analysis, the optimal quantity of pollution exists at the point at which the
A) total benefit of pollution control is equal to the total cost.
B) marginal benefit of pollution control is equal to the marginal cost.
C) level of pollution is at zero.
D) level of pollution is acceptable to the society.
B
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Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests. Suppose your classmate, Heidi, purchased two tickets for $40 each. Is this transaction economically efficient?
A) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer. B) Yes, it was a voluntary exchange that benefited both parties. C) No, people should never be allowed to sell items they received for free. D) No, Heidi paid too much for the tickets.
Monopolies, whose market position is based on exclusive access to resources, eventually lose their monopoly power when there is
a. increasing brand loyalty on the part of consumers b. an expiration in their patents c. a development of new technologies d. exclusive access to resources e. a negative cross elasticity with other goods in the market
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, the change in producer surplus brought about by the introduction of a tariff is:
A. an increase of HIJKL. B. a loss of HIJKL. C. an increase of H. D. a loss of H.
The principal factor determining velocity is the
A. level of income. B. frequency with which paychecks are distributed. C. frequency with which taxes are paid. D. growth rate of real output.