Why is the rate of deforestation frequently higher than would be socially optimal?
a. Forests generate benefits, such as oxygen production and erosion control, that go to those who harvest the trees.
b. The increased demand for fossil fuels to replace biofuels is major driver of deforestation.
c. Deforestation generates costs, such as soil erosion and reduced production of atmospheric oxygen, that are entirely borne by those who harvest the trees.
d. Population pressure coupled with a lack of incentives to conserve open-access resources results in deforestation.
d
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Assume that a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly decreases. Which of the following statements is incorrect?
a. Existing firms will start to suffer short-run losses b. Existing firms will shut down in the short run if average variable cost exceeds average revenue at all output levels c. Some firms will leave the industry in the long run d. The market supply curve will shift to the right in the long run e. Any short-run losses will be eliminated in the long run
The two primary markets for savers to get funds to borrowers are the ______.
a. commodities market and retail market b. precious metals market and currency market c. stock market and bond market d. real estate market and consumer goods market
GDP per capita is a relatively good measurement of:
A. the distribution of income. B. purchasing power. C. household production. D. the standard of living.
Given the possible strategies listed below, design the best plan for increasing the country's future standard of living. i. build new factories ii. print money iii. develop new production technology iv. sacrifice consumer goods for capital formation iv. tighten immigration policy v. produce only enough capital goods to replenish depreciation.
A. i, ii, and iii only B. i, iii, and iv only C. ii, iv, and v only D. i, ii, iii, iv, and v