During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation?
A) Ajax is taking advantage of asymmetric information.
B) This is an example of a market failure and is a reason for the government to regulate the industry.
C) The quality of the product could be improved if the amount of pollution can be reduced.
D) This is known as the lemons problem.
B
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The opportunity cost of holding excess reserves is equal to
A) the federal funds rate. B) the federal funds rate minus the discount rate. C) the discount rate. D) none of the above.
In the long run, a perfectly competitive firm will exit a market when
A) its total revenue is less than its total cost. B) its marginal revenue curve is below the minimum of its average total cost curve. C) the price is greater than the minimum of its average total cost curve. D) Both answers A and B are correct.
The economy of the northern colonies, in particular New England, was largely based on
(a) small-scale farming. (b) slave trade. (c) cotton production. (d) all of the above.
The national manifest system,
a. tracks only the most toxic hazardous wastes b. tracks hazardous and nonhazardous wastes from the point of generation to disposal c. was eliminated with the 1984 RCRA amendments d. is a market-based approach aimed at achieving an efficient solution e. none of the above