The allocatively efficient amount of pollution prevention would occur when
a. the total social benefits of pollution prevention equals the total social costs of pollution prevention
b. the total social costs of pollution prevention are minimized
c. the marginal social benefits of pollution prevention equals the marginal social costs of pollution prevention
d. none of the above
c. the marginal social benefits of pollution prevention equals the marginal social costs of pollution prevention
You might also like to view...
During recessions, unemployment ________ while the budget deficit as a percentage of GDP ________
A) increases; increases B) decreases; increases C) decreases; decreases D) increases; decreases
If resale price maintenance leads to a shift in the market demand that equals the shift in the market supply, the quantity of the good sold will ________ and the manufacturer's profit will ________.
A) increase; not change B) not change; not change C) decrease; decrease D) not change; decrease
To explain the existence of excess capacity, Keynes argued that
A) prices and wages are flexible, and eventually markets would go back to equilibrium. B) the long run average cost curve should not occur at the full employment level. C) the aggregate demand curve can be manipulated by advertising. D) prices and wages are inflexible in the downward direction.
Which of the following will shift the supply curve for laptop computers to the left?
A) development of a cheaper microchip used in laptop computer production B) a subsidy to the laptop computer industry C) expectations of a future decline in laptop computer prices D) a reduction of the number of firms that make laptop computers