Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to
A) use resources very carefully and in small quantities.
B) garage his car and drive very seldom.
C) be making a positive contribution to the greater community.
D) drive too much and use up more scarce resources than he would if he had to cover all his costs.
D
You might also like to view...
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 20 sliders and 60 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
A legitimate objection to the government issuance of "indexed" bonds is that they
A) are more of a drain on the Treasury than conventional bonds. B) can encourage inflation and weaken policy resistance to it. C) discourage saving when inflation is reduced. D) further discourage the use of money and thus increase shoe-leather costs.
Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?
A) unbounded selfishness B) unbounded rationality C) unbounded will power D) unbounded resources
If we consider the equation PAE = A + bY the part of the equation that relates to autonomous sources of spending is:
A. b B. Y C. A D. PAE