From an economic perspective, there is "too little" pollution in a market if
a. The profits of businesses are not maximized
b. The marginal benefits of a polluting activity exceed the marginal costs
c. The marginal costs of a polluting activity exceed the marginal benefits
d. The net social benefits of pollution are zero
e. The net private benefits of pollution are zero
Answer: b. The marginal benefits of a polluting activity exceed the marginal costs
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Using the figure above, suppose education is provided by public colleges. At what level should tuition be set to ensure the efficient number of students?
A) $10,000 B) $5,000 C) $20,000 D) $25,000 E) $15,000
Refer to the scenario above. A firm producing Good Y will ________
A) earn economic profits if it charges a price of 120 B) incur losses if it charges a price of $200 C) earn zero economic profits if it charges a price of $170 D) shut down production if price falls below $200
The period of declining growth in real GDP, between the peak of the business cycle and the trough, is called the: a. contractionary phase. b. boom
c. expansionary phase. d. static phase.