An external cost, such as the cost generated by pollution, is
A) a cost paid by consumers of the product.
B) a cost paid by producers of the product.
C) a cost paid by a third party or by society at large.
D) not a true opportunity cost of production.
C
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The difference between basic and applied research is that: a. basic research does not promote resource productivity while applied research does. b. applied research does not promote resource productivity while basic research does. c. basic research has less immediate payoff to society than applied research typically does. d. basic research occurs in science, while applied research occurs in
industry. e. only the government promotes basic research.
If the CPI was 104 in 1967 and is 390 today, then $10 in 1967 purchased the same amount of goods and services as
a. $2.67 purchases today. b. $37.50 purchases today. c. $39.00 purchases today. d. $104.00 purchases today.
What assumption about human motivation is made in economics? Explain
What will be an ideal response?
Suppose Jones' company and Smith's company both pollute. Under a system of marketable pollution permits, which of the following must be true in order for Smith and Jones to benefit from trading the right to pollute?
A. Smith and Jones must be able to reduce pollution at exactly the same cost. B. Smith and Jones must have different abatement costs. C. Smith and Jones must have a social conscience and must be devoted to pollution abatement. D. The government must direct Smith and Jones toward beneficial trades.