How do the marginal costs of pollution reduction and the marginal costs of pollution damage change as pollution levels increase?
a. The marginal costs of pollution reduction remain constant and the marginal costs of pollution increase
b. The marginal costs of pollution reduction increase and the marginal costs of pollution damage increase
c. The marginal costs of pollution reduction increase and the marginal costs of pollution damage decrease
d. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage increase
e. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage decrease
Answer: d. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage increase
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In the short run, each firm in a perfectly competitive market is free to
a. increase its plant size b. vary its output level within its existing capacity c. exit the industry without losses d. set a price above the market price e. decrease its plant size
Many economists would argue that some frictional unemployment
A. creates massive economic disruptions and should be eliminated as quickly as feasible. B. cannot and probably should not be eliminated. C. no longer exists because increased unemployment benefits have generally solved this problem. D. should be eliminated whatever the cost.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.
Answer the next question based on the following data. All figures are in billions of dollars.Gross investment$18National income100Net exports2Personal income85Personal consumption expenditures70Saving5Government purchases20Net domestic product105Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $107 B. $95 C. $110 D. $100