The optimal level of air quality
a. is always zero
b. occurs when the marginal social cost of air quality exceeds the marginal social benefit
c. is greater if the marginal social benefit curve of air quality shifts rightward
d. occurs when positive externalities are eliminated
e. eliminates the common pool problem
C
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The government of a country decides it long-run exchange rate and intervenes regularly in the foreign exchange market to keep the exchange rate at its fixed level. The country is most likely to have a ________
A) fixed exchange rate system B) dirty-float exchange rate system C) real exchange rate system D) floating exchange rate system
Graphing the data in the above table with the number of workers on the horizontal axis and the average cost on the vertical axis, the graph would show
A) first a negative and then a positive relationship. B) a horizontal line. C) no relationship. D) a linear relationship.
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the competitive market quantity?
A. 108,000 B. 60,000 C. 500 D. 0
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the lowest opportunity cost for combs in terms of brushes is
A. 8.5 brushes per comb. B. 0.33 brush per comb. C. 10 brushes per comb. D. 2 brushes per comb.