The data in the table show the marginal costs and marginal benefits to a city for five different levels of pollution control.Quantity of Pollution AbatementMarginal CostMarginal Benefit900 tons$400,000$100,000800 tons300,000150,000700 tons200,000200,000600 tons100,000250,000500 tons50,000300,000Refer to the above table. If the marginal benefit of pollution abatement increased by $150,000 at each level because of the community's newfound desire to attract cleaner industry, then the optimal level of pollution abatement in tons would be:
A. 600.
B. 700.
C. 800.
D. 900.
Answer: C
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A) generate tremendous economic growth. B) overcome scarcity. C) lead to a greater coordination among peoples' production and consumption plans. D) allow everybody the opportunity to seek their comparative advantage. E) accomplish none of the above.
Which of the following is true of welfare states?
A) Resources are not equally distributed in a welfare state. B) Resources are efficiently allocated in a welfare state. C) A welfare state entails a huge cost on the society. D) A welfare state usually has a regressive tax system.
A change in the price of one good, such as staples, may affect the quantity demanded of another good, such as rubber bands
a. True b. False Indicate whether the statement is true or false
All of the following are examples of macroeconomic problems EXCEPT
A) inflationary pressures caused by an increase in the cost of petroleum. B) unemployment caused by a fall off in the level of residential construction. C) a decline in the rate of overall economic growth. D) consumers deciding to buy more fish and less beef because of concerns about a healthier diet.