In perfect competition, environmental externalities need not distort the allocation of resources providing:
a. transactions costs are zero.
b. average costs are constant for all output levels.
c. firms install pollution control equipment.
d. the government sets realistic pollution standards.
a
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The stock of capital ________ with any gross investment and ________ with any depreciation
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
If cable TV subscriptions and movie rentals are substitutes for each other, what is the effect in each of these markets of an increase in wages for people who work for the cable TV company? Use your analysis to determine the sign of the cross
elasticity of demand between the quantity of movie rentals and the price of cable TV.
Use the growth accounting equation to calculate productivity growth, given output growth of 3.5%, capital stock growth of 5%, labor employment growth of 2%, the output elasticity of capital of 0.3, and the output elasticity of labor of 0.7
What will be an ideal response?
The right to earn interest is the incentive that motivates people to supply loanable funds to the loanable funds market
Indicate whether the statement is true or false