What are two benefits of the new miles-per-gallon requirements? Are these benefits in someone's self-interest or in the social interest?
What will be an ideal response?
Two benefits of the new miles-per-gallon requirements are: (1) less gasoline will be used, and (2) carbon emissions will be lowered. Con-sumers benefit from the new mileage standards because their expenditure on gasoline will decrease which enables them to increase their consump-tion of some other goods and services. It is also in the social interest be-cause more gasoline, or oil from which gasoline is made, is available for other uses. Lower carbon emissions are in the self-interest of everyone and in the social interest because these emissions cause global warming.
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The principal-agent problem would not occur if ________ of a firm had complete information about actions of the ________
A) owners; customers B) owners; managers C) managers; customers D) managers; owners
If you invest $1,000 in a savings account and the annual interest rate is 3.6 percent, your account balance will double in value in approximately _____
a. 185 years b. 72 years c. 34 years d. 20 years e. 3.4 years
Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets, prices fell and quantities increased. The result suggests thatÂ
A. these markets were contestable. B. there was evidence of market power. C. oligopoly firms bought out their competitors. D. the market had no barriers to entry.
Changes in government purchases affect spending:
A. autonomously. B. indirectly. C. directly. D. only when there is an expansionary gap.