The "principle of rival consumption" applies to which of the following?
A) national defense
B) the free-rider problem
C) the exclusion principle
D) a private good
Answer: D
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Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
Evidence points out that since the mid-1950's just about every recession was preceded by:
A. low interest rates. B. falling interest rates. C. rising interest rates. D. negative real interest rates.
Suppose the budget deficit is rising 3 percent per year and nominal GDP is rising 5 percent per year. The debt created by these continuing deficits is
a. sustainable, but the future burden on your children cannot be offset. b. sustainable, and the future burden on your children can be offset if you save for them. c. not sustainable, and the future burden on your children cannot be offset. d. not sustainable, but the future burden on your children can be offset if you save for them.
David Ricardo's assumption for economic rents for land was based on
A. the supply of land being a fixed quantity. B. total government control of land. C. a shortage of land. D. a surplus of land.