Which of the following observations is true?
A. Environmental damage can be reduced to zero.
B. Pollution results from a price mechanism malfunction.
C. Charging those who emit pollution is not a way of dealing with pollution problems.
D. Public interest requires pollution be maintained at its free-market level.
Answer: B
You might also like to view...
Economic profit equals NOPAY plus capital charges
Indicate whether the statement is true or false
The U.S. government funds the federal budget deficit by
A. borrowing from large private banks at favorable terms and low interest rates. B. selling securities such as Treasury bonds and Treasury bills. C. selling stock in government-owned corporations D. selling shares in gold owned by the Federal Reserve via special drawing rights.
At an output of 19, MC = $39 and AVC = $44. At an output of 20, MC = $50 and AVC = $45. At the shutdown point, AVC is
A. more than $45. B. $45. C. between $44 and $45. D. less than $44.
Which statement best summarizes the perspective from which economic theory explains social occurrences? Economic theory assumes
A) gains and losses will eventually cancel out. B) individuals make choices consistent with their goals. C) the law of averages holds in the long run. D) the value of anything is equal to its price. E) whatever people want is what they ought to be able to buy.