If the marginal cost of pollution abatement differs across firms, then regulations that require all polluters to reduce pollution by a fixed proportion will be:
A. fair to all polluters.
B. efficient.
C. ineffective.
D. inefficient
Answer: D
You might also like to view...
To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. reduce the current capital stock. B. allow higher rates of current consumption. C. reduce current rates of consumption spending. D. decrease the amount of future research and development spending.
A firm’s minimum AC is $10, its minimum AVC $7. Show this firm’s short-run supply curve, explaining how you obtained it.
What will be an ideal response?
Exhibit 3-2 Demand curves
In Exhibit 3-2, the shift in the demand curve from D1 to D2 could have been caused by which of the following?
A. Decrease in price. B. Increase in expected future prices. C. Increase in the price of a complement. D. Decrease in income if it is a normal good.
The production possibilities curve for two products is bowed out because
A) as the production of a good increases, opportunity cost increases. B) as the production of a good increases, opportunity cost is unchanged. C) the qualities of the resources are not identical. D) there are unemployed resources.