The figure below depicts the relationship between the social benefits and social costs associated with different levels of pollution. The two curves are Social Marginal Cost (SMC) and Social Marginal Benefit (SMB). The other terms are P = Price of the commodity, MC = Marginal Cost (private), and MB = Marginal Benefit (private). For pollution level 'a', ________, therefore the country should ________ pollution.
A. SMB > SMC; increase
B. SMB > SMC; decrease
C. SMC < MC = P = MB; decrease
D. SMC = MC; decrease
Answer: A
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Which of the following industries has the highest concentration ratio?
A. Soft drinks. B. Wheat production. C. Sugar production. D. Used car sales.
Refer to the above table. If the consumer's equilibrium consists of 4 movies and 4 apple pies, then we know that
A. the price of a movie download is 6 times more than the price of an apple pie. B. the price of a movie download is 5 times more than the price of an apple pie. C. the price of an apple pie is 5 times more than the price of a movie download. D. the price of an apple pie is 3 times more than the price of a movie download.
In a partnership, debts accumulated by one partner are
A. the responsibility of all of the other partners, up to the total value of the firm. B. the responsibility of that partner only. C. the responsibility of all of the other partners for the full amount of the debt. D. the responsibility of that partner plus any partners who are actively involved in running the partnership.
The experience of sub-Saharan Africa, as compared to that of "Other Asia" (not including the HPAEs) supports the argument that
A) high rates of protection tend to harm economic growth. B) the poorer is the country the easier it is for it to "catch up" economically. C) low rates of protection tend to promote economic growth. D) free trade always best stimulates a developing country's economy. E) neither trade liberalization nor import substitution is a foolproof strategy for economic development.