Marginal social cost is the difference between the marginal cost and the marginal damage cost.
Answer the following statement true (T) or false (F)
False
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The North American Free Trade Agreement signed in 1993 lowered tariffs among the United States, Canada, and Mexico. What would proponents of the treaty consider to be the likely benefits?
What will be an ideal response?
Billie Jean has $120 to spend and wants to buy either a new amplifier for her guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3 player cost $120, so she can only buy one. This illustrates the basic concept that
a. trade can make everyone better off. b. people face trade-offs. c. rational people think at the margin. d. decisions made at the margin are not particularly important.
When the Fed conducts open market operations, the impact of the buying or selling of bonds will include changes in
A) SRAS. B) interest rates. C) LRAS. D) a and b E) a, b and c
Do economists tend to favor a system in which power plants buy and sell the right to pollute in the form of emission credits?
A. Yes; they encourage all firms to cut pollution by the same percentage. B. No; it is possible for some firms to do nothing if they simply buy enough credits. C. Yes; they believe that such a proposal would achieve a level of pollution reduction with the lowest cost to society. D. No; these programs are ineffective because they encourage major polluters to free ride on the efforts of others.