A clean environment is healthier than a polluted environment. Use the law of increasing costs to explain why even environmentalists might not advocate laws banning all pollution
Incremental improvements to the environment become increasingly expensive in terms of everything else that we have to give up.
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Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes and the supply curve of shoes ________
A) increases; shifts rightward B) increases; shifts leftward C) decreases; shifts rightward D) decreases; shifts leftward E) does not change; does not shift
In short-run equilibrium, a perfectly competitive firm
a. may earn a profit or a loss. b. always earns a profit. c. never earns a profit. d. earns a profit only if the firm has no fixed cost.
Which of the following is not an effective method of reducing negative externalities?
a. relying on voluntary compliance b. taxing the output of industries that pollute c. creating legal environmental standards d. increasing public spending on cleanup and reduction of pollution
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $1,000, all else constant, quantity demanded will ________ by ________ units.
A. decrease; 500 units B. decrease; 1200 units C. increase; 500 units D. decrease; 320 units E. increase; 3.2 units