The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. If paper production is 4 tons per week, the outcome is ________
A) efficient because marginal benefit equals marginal private cost
B) efficient because private and external costs are accounted for
C) inefficient because only marginal external benefits are accounted for
D) inefficient because marginal social cost exceeds marginal social benefit
D
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The Sarbanes-Oxley Act of 2002 requires that CEOs personally certify the accuracy of financial reports
Indicate whether the statement is true or false
Another description for capitalism is:
a. The socialist economy b. The market system c. The system of inputs and outputs d. The command system
Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
A. Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices. B. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties. C. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled. D. All of these are consequences of rent controls.
The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the:
A. Manager B. Entrepreneur C. Stockbroker D. Banker