Why does it usually not make sense to reduce pollution to zero?
What will be an ideal response?
The marginal benefits from reducing pollution are likely declining while the marginal costs are usually rising. If pollution is reduced to zero, it will be very costly to reduce the last few increments of pollution with little benefit to society.
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If the demand for a good is very price elastic, the imposition of a tax on that good
a. places the largest portion of the burden on the sellers of that product b. places the burden of the tax equally on buyers and sellers c. places the largest portion of the tax on consumers d. will make demand more elastic than it was before the tax e. will make demand more inelastic than it was before the tax
Owners of land are compensated according to the
a. absolute level of production from the land. b. number of laborers the land can support. c. purchase price of the land stock. d. value of the marginal product of land.
A decrease in government spending will cause
A. AD to increase (move to the right). B. AS to decrease (move up and to the left). C. AS to increase (move down and to the right). D. AD to decrease (move to the left).
Which of the following happens at q2?
a. P2 = ATC
b. P2 > ATC
c. P2 < ATC
d. P2 ÷ ATC