The optimum level of pollution emissions
A) is zero.
B) occurs where the marginal external benefit is zero.
C) occurs where no damage to the environment is being done.
D) occurs where the marginal external benefit equals the marginal external cost.
E) occurs where the marginal external cost equals the marginal cost of abatement.
E
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Adjustable rate mortgages
A) reduce the interest-rate risk for financial institutions. B) benefit homeowners when interest rates rise. C) generally have higher initial interest rates than conventional fixed-rate mortgages. D) allow borrowers to avoid paying interest on portions of their mortgage loans.
On the production possibilities curve, a movement between points that yields a loss of one good in order to raise the output of another good will maintain efficient production
a. True b. False Indicate whether the statement is true or false
?An aggregate supply curve with a positive slope is associated with an economy in which:
A. ?input prices and final goods prices always change by the same amount. B. ?firms expect output prices to be unaffected by changes in input prices. C. ?nominal wages and salaries do not change much in the short run. D. ? firms expect consumer demand to be unaffected by changes in prices of final goods.
To encourage economic development a country should do all of the following EXCEPT
A. allow creative destruction to run its course. B. limit the amount of imports allowed into the country. C. establish a system of property rights. D. invest in human capital.