It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. In the situation described above, we would expect an
What will be an ideal response?
overproduction of paper in the mills.
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A social cost that is not fully paid by the individual using an automobile is
A) traffic congestion. B) gasoline and oil. C) insurance. D) depreciation of the vehicle.
Sam has $500 saved up for his spring break. He also carries about $300 of debt on his credit card. By choosing not to pay off his credit card with his savings, Sam is:
A. recognizing that money is fungible. B. going to be poorer in the long run. C. acting rationally. D. None of these is true.
What are the sources of human capital?
What will be an ideal response?
An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen b. an increase in insurance premiums c. fewer workers to be employed because their marginal revenue product has decreased d. more workers to be employed because their marginal revenue product has increased e. fewer workers to be employed because their marginal revenue product has increased