Explain why the optimal amount of pollution is often not zero
What will be an ideal response?
The optimal amount of pollution occurs when the production decision includes the cost of pollution. Some pollution may exist with the optimal level of production because although pollution is harmful, production of goods is beneficial. A trade-off between the harm of pollution and the benefits of production leads to some pollution.
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What were the two main sources of population increases during the antebellum period?
(a) a significant increase in the number of indentured servants and slaves (b) immigration and a natural increase in population (c) government policies providing incentive to procreate and advanced pre-natal care (d) longer life expectancies and high infant mortality rates
For a price-taking firm, marginal revenue
A. is the addition to total revenue from producing one more unit of output. B. decreases as the firm produces more output. C. is equal to price at any level of output. D. both a and b E. both a and c
Because automatic stabilizers lower transfer payments and raise tax receipts as an economy recovers from a recession, they:
A. slow down the pace of an economic recovery. B. accelerate the recovery from a recession until inflation starts to develop, at which point they slow the recovery. C. do not affect the pace of an economic recovery. D. increase the pace of an economic recovery.
Which of the following criticisms is NOT directed at the IMF?
A) It lacks openness in its decision-making process. B) It serves the interests of wealthier countries. C) It creates a free-riding problem. D) It violates national sovereignty.