Property right enforcement and markets can be imperfect, so environmental regulations are often used to correct market failures that result in environmental damages. But governmental regulation itself can be imperfect because
a. both environmental harms and the benefits of reducing them are uncertain and difficult to measure.
b. regulation overrides the market, and therefore the regulators do not have market information on the costs imposed on damaged parties or those required to reduce the damages.
c. special interests often use the regulatory process to obtain political favors that waste resources and conflict with the stated objectives of the regulation.
d. all of the above are true.
D
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The labor force is the sum of
A) employed workers and discouraged workers. B) employed workers and unemployed workers. C) employed workers and individuals not looking for work. D) unemployed workers and the working-age population.
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A. shut down. B. continue to produce its current output. C. increase output. D. decrease output.
Economists proclaim that competitive firms make zero economic profit in the long run. This shows how
A) detached economists are from the real world. B) unrealistic economic theory is. C) firms cover all their cost, both monetary and non-monetary. D) firms cover only monetary cost when economic profits are zero.
You want to buy a TV that regularly costs $250. You can either buy the TV from a nearby store or from a store that's downtown. Relative to going to the nearby store, driving downtown involves additional time and gas. The downtown store, however, has a 10% off sale this week. Last week you drove downtown to save $20 on some concert tickets, a 15% savings. Should you drive downtown to buy the TV?
A. Yes, because you will save more than $20. B. Yes, because you will save 10%, which is better than nothing. C. No, because you will only save 10%, which is less than 15%. D. No, because you will save more than $20.