Which of the following statements is TRUE about the optimal quantity of pollution?
A) It equals zero.
B) Pollution abatement should continue up to the point where marginal cost equals the average total cost.
C) Trade-offs exist between producing a cleaner environment and producing other goods and services.
D) Firms should be allowed to determine the profit-maximizing amount of pollution abatement.
Answer: C
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The monetary return on a college education is considered economic rent
a. True b. False Indicate whether the statement is true or false
The primary deficit is equal to
A. outlays - tax revenues. B. government purchases + transfers - tax revenues. C. outlays + net interest - tax revenues. D. government purchases + transfers + net interest - tax revenues.
In 2009, we ran a ________ on our current account and a _______ on our capital account.
A. deficit; deficit B. surplus; surplus C. deficit; surplus D. surplus; deficit
What is TRUE about government budget deficits and surpluses since 1940?
A) There have been more government budget surpluses than government budget deficits. B) The number of government budget deficits is about the same as the number of government budget surpluses. C) Balanced budgets have been more common than government budget deficits or government budget surpluses. D) There have been more government budget deficits than government budget surpluses.