Economists view pollution as an economic problem that arises because:
a. private enterprise always minimizes the amount of pollution produced.
b. profitable firms rarely pollute.
c. as the economy grows, the level of pollution declines.
d. firms that pollute do not pay the full social cost of producing their output.
d
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If the price level increases, the
A) demand for money decreases. B) quantity of money demanded increases. C) quantity of money demanded decreases. D) demand for money increases. E) demand for money does not change and the quantity of money demanded does not change.
Selling a good abroad below the price charged in the home market, or at a price below the cost of production is called
A) dumping. B) import substitution. C) a quota. D) a tariff.
The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2013, the income cutoff was
a. $15,000. b. $32,700. c. $113,700. d. $250,000.
If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will
A) hire more labor. B) lay off workers. C) maintain its current level of workers. D) raise the real wage.