Refer to the diagram. With MB 1 and MC 1 , society's optimal amount of pollution abatement is:
A. Q 1 .
B. Q 2
C. Q 3 .
D. Q 4 .
A. Q 1 .
You might also like to view...
Fill in the blank: An opportunity cost is the ________ opportunity a person sacrifices when making a choice
A) every B) least desirable C) next-best D) strictly financial
If the price level rises by 3 percent and workers' money wages increase by 3 percent, then the
A) quantity of labor demand will decrease. B) quantity of labor demand will increase. C) quantity of labor demanded does not change because there is no change in the real wage rate. D) Any of the above could occur depending on the magnitude on the dollar increase in the price level versus the dollar increase in the wage rate.
When Karen buys eight units of a particular good or service, _______________.
A. she has no consumer surplus B. she has a consumer surplus C. there is no way of knowing whether she has a consumer surplus
Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 4%. What should the Fed do to achieve a noninflationary, full-employment level of real GDP?
A. Decrease the money supply from $225 billion to $150 billion. B. Increase the money supply from $150 billion to $225 billion. C. Increase the money supply from $75 billion to $150 billion. D. Make no change in the money supply.