Pollution is an externality, this means
A. the free market allows households and firms to consume a minimal amount of clean air.
B. it is in the public interest to reduce pollution levels to zero.
C. individuals and firms consume “free” air wastefully.
D. the pricing system sets clean air at a high price.
Answer: C
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What does the term "commitment" refer to in game theory?
What will be an ideal response?
Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850 . How much profit would it make?
a. $1850 b. Zero-they would break even c. They would make a loss of $650 d. They would make a loss of $1100
Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000 . Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000
a. She should make both improvements to her house. b. She should replace the carpeting but not replace the roof. c. She should replace the roof but not replace the carpeting. d. She should not make either improvement to her house.
Andrew Carnegie was largely responsible for the development of the _________ industry; while John D. Rockefeller was largely responsible for the development of the _________ industry.
Fill in the blank(s) with the appropriate word(s).