Producing paper creates pollution. There is no externality in the consumption of paper. The efficient quantity of paper is when the
A) marginal social benefit of paper is equal to zero.
B) marginal social cost of the pollution from making paper is equal to zero.
C) marginal social benefit of paper is equal to the marginal social cost of paper.
D) marginal private cost of the pollution from making paper is equal to zero.
C
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The rational expectations hypothesis indicates that a monetary policy designed to alter real Gross Domestic Product (GDP) will fail unless
A) changes in the money supply are completely anticipated. B) labor unions have long-term contracts. C) the government's budget is not in deficit. D) changes in the money supply are unexpected.
Refer to Table 5.1. Expected income for the first year is
A) highest in accounting. B) highest in mathematics. C) higher in English than in mathematics. D) higher in political science than in economics. E) highest in economics.
In a principal-agent relationship
a. the principal wants the agent to act on her own behalf b. the agent wants the principal to act on his behalf c. the principal wants the agent to act on the behalf of others d. the agent wants the principal to act on the behalf of others
According to the Keynesian savings schedule, when aggregate income increases by a given amount, savings will
A) remain the same B) decrease by the amount of change in income C) increase by the amount of the change in income D) increase by less than the amount of the change in income E) increase by more than the amount of the change in income