What is the economic rule for the efficient amount of pollution?
What will be an ideal response?
It is efficient to reduce pollution up until the marginal benefit from reducing the pollution equals the marginal cost of abatement.
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Economists refer to the conflict between the interests of shareholders and the interests of top management as
A) a stock-equity problem. B) a liability problem. C) a financial intermediary problem. D) a principal-agent problem.
The Keynesian cross model attributes differences between actual output and planned expenditure to
a) unintended inventory accumulation or depletion b) buffer stocks resulting from risk-averse decision-making regarding production c) taxes d) net exports e) the diminishing marginal product of capital
Figure 8.6 depicts a monopolistically competitive firm in the long run. Illustrate on the graph the firm's price and output level in long-run equilibrium. Explain.
What will be an ideal response?
An individual with a constant marginal utility of income will be
A) risk averse. B) risk neutral. C) risk loving. D) insufficient information for a decision