From society's point of view, the amount of air and water pollution that currently exists is excessive. Which of the following statements are explanations of this excessive pollution?
a. Firms that cause air and water pollution are not paying the full social costs of producing their output.
b. Consumers, who purchase goods from firms that pollute, are not paying a price for these goods which totally reflect the social costs of producing the goods.
c. Private property rights for clear air and clean water are not currently well defined by the judicial system; hence private individuals cannot charge polluters for the external costs these polluters impose on private individuals.
d. All of these.
d
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A monopolist would probably earn fewer profits if
A) the importance of specialized capital equipment in its production techniques increased. B) the time length of patents increased. C) environmental regulations increased that required the purchase of special capital equipment. D) tariffs on competing products were lowered.
An economy's ________ will fall if its real interest rate rises
A) labor supply B) real wage rate C) supply of credit D) real output
The major categories of expenditures in the economy are:
A) consumption, gross investment, and government purchases. B) consumption, net investment, and net exports. C) consumption, fixed investment, government purchases, and net imports. D) consumption, gross investment, government purchases, and net exports.
The higher the beta,
A) the smaller the diversifiable risk. B) the smaller the nondiversifiable risk. C) the larger the diversifiable risk. D) the larger the nondiversifiable risk.