According to economic analysis, the optimal quantity of pollution exists at the point at which the
A) total benefit of pollution control is equal to the total cost.
B) marginal benefit of pollution control is equal to the marginal cost.
C) level of pollution is at zero.
D) level of pollution is acceptable to the society.
Answer: B
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The figure above shows the demand and cost curves for a single-price monopoly. What price will the firm charge?
A) $50 per unit B) $30 per unit C) $20 per unit D) $10 per unit
The welfare loss of monopoly is also called
a. converted consumer surplus b. deadweight loss c. economic profit under monopoly d. producer surplus e. contestable profit
The nominal rate of interest is 2% and the anticipated rate of inflation is 2%. What is the real rate of interest?
A) 4% B) 2% C) -4% D) 0%
Which of the following is a normative economic statement?
A) Rising global demand for coal has led to increases in the price of coal. B) With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased. C) The state of Texas is considering increasing funds for light-rail development to promote the use of public transportation. D) Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable.