The optimal level of air quality will increase if
a. the cost of polluting increases
b. pollution is found to be self-absorbing
c. a new process allows pollution to be removed more cheaply
d. the marginal social cost of air quality increases
e. the marginal social benefit of air quality decreases
C
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Modern economists measure how much utility Fred gets from a hot dog by
A. asking Fred how many utils he gets from its consumption. B. examining the price of the hamburger Fred chose not to buy. C. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good except money. D. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good, including money.
The differential taxation of inputs does not create an excess burden.
A. True B. False C. Uncertain
Changes in liquidity in the banking system affect ________
A) the nominal interest rate B) the real interest rate C) the federal funds rate D) all of the above E) none of the above
Which of the following would best describe the demand curve faced by a monopoly firm?
A) horizontal line at the market price B) vertical line at the output level C) same as the market demand curve D) same as the perfect competitor's demand curve