At the optimum, the marginal social benefit from pollution emissions
A. will equal the marginal social cost of pollution emitted.
B. will be less than the marginal social cost of pollution emitted.
C. will be greater than the marginal social cost of pollution emitted.
D. is zero.
Answer: A
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In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?
What will be an ideal response?
At his current level of output, a monopolist has an MR of $10, an MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his or her marginal cost curve upward sloping, the monopolist
A. is producing his or her profit-maximizing level of output. B. could increase his or her profit by increasing his or her output. C. could increase his or her profit by increasing his or her price. D. should exit the market if he or she has positive fixed cost.
Demand for items people do not really need for their survival, such as cars, is generally ________ than demand for items such as water.
A. higher B. lower C. more elastic D. less elastic
Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer is subject to present bias, he/she will maximize utility at a marginal utility per dollar of ________ utils for consumption and ________ utils for saving.
A. 15; 15 B. 15; 30 C. 30; 15 D. 30; 30