Suppose a firm pollutes a river when it produces a product. To achieve the efficient amount of output, a government could impose a ________ that equals the ________ of the pollution
A) pollution charge; marginal social cost
B) pollution charge; marginal external cost
C) pollution tax; marginal social cost
D) pollution tax; marginal external cost
E) pollution subsidy; marginal social cost
D
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In the endogenous growth model, workers divide their time between market work and
A) accumulating physical capital. B) accumulating human capital. C) trying to invent new production processes. D) work at home.
"Because resources are scarce, the production of more capital goods means that fewer resources are available to produce consumption goods, so there is less current consumption." Do you agree or disagree? Explain
What will be an ideal response?
Under the law of demand, any increase in price will cause ________ in quantity demanded
a. a decrease b. constant change c. an increase d. no change
There would be no reason for students to study the concept of opportunity costs if:
A.) The market mechanism functioned to allocate resources. B.) The government allocated resources. C.) The production possibilities curve bowed outward. D.) Resources were no longer scarce.