At the efficient level of pollution, the:
a. total social costs and total social benefits of reduction are equal.
b. marginal social costs and marginal social benefits are equal.
c. marginal private costs and marginal private benefits are equal.
d. total private costs and total private benefits are equal.
b
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Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price floor imposed at $7 per thousand cubic feet. That price floor is then lowered to $5 per thousand cubic feet. As a result, a. the shortage of natural gas will get worse
b. the shortage of natural gas will get less severe. c. the surplus of natural gas will get worse. d. the surplus of natural gas will be eliminated.
An outward shift in the demand curve for land will
a. make previously zero-rent land profitable. b. induce people to begin to use land more extensively. c. force reductions in rents. d. be accompanied by a shift in the supply of land.
Producer surplus equals the market price less the producer's minimum willingness to accept, or marginal cost.
Answer the following statement true (T) or false (F)
Covered interest arbitrage involves both
A) the purchase of a foreign asset and a forward contract in the market for foreign exchange. B) the purchase of a domestic asset and a spot contract in the market for foreign exchange. C) the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange. D) the sale of domestic stocks and the purchase of foreign bonds.