The marginal social benefit curve for water quality slopes downward because
a. the total benefit from clean water decreases as water becomes cleaner
b. the added benefit from cleaner water is greater when water quality is poor than when water quality is high
c. the added benefit from cleaner water is smaller when water quality is poor than when water quality is high
d. the total benefit from clean water increases as water becomes cleaner
e. people demand clean water at any price
B
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The materials balance model
a. captures only environmental pollution b. explicitly illustrates both the flow of resources and the flow of residuals c. illustrates both the money and real flows d. all of the above e. (b) and (c) only
If average product is decreasing, then marginal product must be negative
Indicate whether the statement is true or false
In the IS-LM model, equilibrium income can be affected by
A) fiscal policy alone. B) monetary policy alone. C) both fiscal and monetary policy. D) neither monetary nor fiscal policy.
Dynamic tax analysis is based on the recognition that as tax rates are increased
A) tax revenue collections will eventually decline. B) tax revenue collections will continually increase. C) tax revenue collections will change at the same rate as the tax rates. D) tax revenue collections will increase at a faster rate than the tax rate change.