Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
A) will be zero.
B) will be negative.
C) will be greater than zero.
D) cannot be determined.
Answer: C
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What is a production function?
a. A relationship between a firm's profits and the technology it uses in its production processes. b. A relationship between the cost and revenue of a firm associated with each possible output level. c. A relationship between any combination of input services and the maximum attainable output from that combination. d. The relationship between a worker's education and his or her ability to be a productive employee.
Other things equal, cartels and similar collusive arrangements are easier to establish and maintain:
A. when there are ample opportunities for the firms to make secret price concessions to selected buyers. B. during periods of business-cycle stability and full employment. C. when the demand and cost conditions of the participating firms differ substantially. D. when the number of firms is relatively large.
The program that was created to provide rebates of Social Security taxes to low-income workers is
A) Supplemental Security Income. B) food stamps. C) Earned Income Tax Credit program. D) TANF.
As a person buys increasing amounts of a good, their marginal utility ______ and their consumer surplus ______.
A. decreases; increases B. decreases; decreases C. increases; increases D. increases; decreases