According to economic analysis, the optimal quantity of pollution exists at the point at which the
A. marginal benefit of pollution control is equal to the marginal cost.
B. level of pollution is acceptable to the society.
C. total benefit of pollution control is equal to the total cost.
D. level of pollution is at zero.
Answer: A
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A good way to reduce unemployment in rural areas is to
a. encourage migration of surplus labor to the cities b. encourage manufacturing and service activities in the rural areas c. increase the labor intensity of agricultural production d. improve the technological sophistication of agricultural production e. none of the above
Fragmented markets are those that are
a. functioning in relative isolation from each other b. separated by considerable distance c. functioning only some of the time d. easily destroyed by outside events e. none of the above
Dynamic tax analysis is an economic evaluation of tax rate changes
A) by the National Tax Institute in Burlington, Massachusetts. B) by various state governments. C) by the tax institutes established by a consortium of business schools. D) based on the assumption that tax base declines if tax rates continuously increase.
?Assume the economy is experiencing an inflationary gap, classical economists believe that:
A. ?flexible wages will restore full employment. B. ?the federal government should decrease spending to shift the aggregate demand curve leftward. C. ?the Federal Reserve should lower the interest rate. D. ?the federal government should increase spending to shift the aggregate demand curve rightward.