"The optimal level of pollution is zero." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. There are costs to cleaning up pollution. Therefore, the optimal level of pollution arises at the point at which the marginal benefit from further reducing pollution equals the marginal cost of further reducing pollution.
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Discuss three channels by which monetary policy affects stock prices and aggregate spending
What will be an ideal response?
The demand curve facing a monopolist
a. is kinked at the market price b. is perfectly elastic c. lies above its marginal revenue curve d. lies below its marginal revenue curve e. is the same as its marginal revenue curve
The sum of wages and salaries, interest, rent, and profits equals
A. net national product. B. national interest. C. gross national product. D. national income.
In the Cournot model, firms take their rivals' reactions as given.
Answer the following statement true (T) or false (F)