If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit
b. the marginal social cost of air quality equals the marginal social benefit
c. the marginal social cost of air quality equals the marginal private cost of air quality
d. government regulators set it
e. all costs are absorbed by the polluter
B
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The policy tool of "credit easing" refers to the ________
A) Treasury's issuance of federal debt to finance home buying B) federal government's requirement that the Fed must lend directly to home buyers C) Fed's requirement that the federal government must lend to directly to home buyers D) Fed's purchase of private securities to stimulate banks' lending E) Fed's lowering of the federal funds rate to zero
The infant industry argument
a. is that governments should protect all industries for the first five years of existence b. is that governments should protect a new industry until it can "stand on its own feet" c. defends quotas on products produced by infant industries abroad d. has been used to justify protection of strategically important industries e. explains why some less developed countries export raw materials
A group of buyers and sellers of a particular good or service is called a(n)
a. coalition.
b. economy.
c. market.
d. competition.
What price should a firm charge for a package of five ties given a marginal cost of $5 and an inverse demand function P = 10 ? Q by the representative consumer?
A. $50 B. $12.50 C. $37.50 D. $25