The concept of the "best" level of pollution suggests that:
a. increased concerns about pollution control shifted the marginal social cost curve to the left
b. the opportunity cost of reducing pollution may sometimes exceed the benefit.
c. unregulated markets generally reduce pollution to efficient levels with marginal social cost equal to marginal social benefit.
d. none of the above
b
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Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to know
A) only how much income he has available to spend on gasoline and coffee. B) only the prices of one gallon of gasoline and one pound of coffee. C) only how much gasoline he wants to buy and how much coffee he wants to drink. D) both how much income he has to spend and the prices of one gallon of gasoline and one pound of coffee.
The quantity of a public good supplied by a private market is
A) smaller than the efficient quantity. B) equal to the efficient quantity. C) larger than the efficient quantity. D) the quantity that maximizes total public benefit.
The figure above shows a graph of the market for pizzas in a large town. What characterizes the equilibrium in this market?
A) There is excess supply at the equilibrium price of $7. B) The government has selected the appropriate price for pizzas. C) The quantity supplied equals the quantity demanded. D) Supply equals demand.
If a manager is not the owner, the manager:
A. does not receive the full benefit nor the full cost of his or her decisions. B. bears the full cost of bad decisions. C. receives the full benefit of good decisions. D. None of the statements is correct.