If a production process creates pollution, a competitive market produces excessive pollution because
A) the firms do not include the social cost of the pollution in their profit-maximizing decisions.
B) the firms place too high a price on society's cost of inflation.
C) people are not injured by the pollution.
D) zero pollution is optimal.
A
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When the Fed increases the quantity of money, the
A) demand for money curve shifts rightward. B) equilibrium nominal interest rate falls. C) equilibrium nominal interest rate rises. D) supply of money curve shifts leftward. E) demand for money curve shifts leftward.
During 2005, real GDP in Ireland grew 9.8 percent. If Ireland maintains this level of growth in the future, real GDP will double in approximately how many years?
What will be an ideal response?
Goods are scarce because
a. of greed; if human beings were not so selfish, goods would not be scarce. b. the desire for goods is far greater than their availability from nature. c. of competition; if people were not so competitive, it would be possible to satisfy people's desire for material goods. d. of private property; if things were not owned privately, scar
In order to get children to eat all the food they've served, regardless of their hunger, mothers have relied for decades on the argument that "there are starving children in Africa." Assuming the presence of hungry children on another continent does not affect the utility you derive from the food on your plate, if you choose to force down food based on this argument, you are:
A. acting irrationally. B. acting rationally. C. caring more about starving children than your own well-being. D. doing your part in the fight against world hunger.