Which of the following statements concerning pollution is correct?
A. Economic efficiency requires that pollution be completely eliminated.
B. Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.
C. Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost.
D. Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
Answer: D
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If in the long run, imports are paid for by exports, then
A) any restriction of imports ultimately reduces exports. B) any restriction of imports ultimately expands exports. C) any restriction of imports has no impact on exports. D) any restriction of exports has no impact on imports.
If on Tuesday you can buy 125 yen per U.S. dollar and on Wednesday you can buy 120 yen per U.S. dollar,
a. both the U.S. dollar and the yen have appreciated b. both the U.S. dollar and the yen have depreciated c. the U.S. dollar has appreciated and the yen has depreciated d. the U.S. dollar has depreciated and the yen has appreciated e. the yen has appreciated and the U.S. dollar has remained constant
Suppose that Congress were to repeal an investment tax credit. What would happen in the market for loanable funds?
a. The demand and supply of loanable funds would shift right. b. The demand and supply of loanable funds would shift left. c. The supply of loanable funds would shift right. d. The demand for loanable funds would shift left.
Scaling back the U.S. "war on terror" would:
A. suggest that the United States is allocating less than the optimal amount of resources to the war on terror. B. shift U.S. production from "defense goods" to "civilian goods." C. shift U.S. production from "civilian goods" to "defense goods." D. shift the production possibilities curve inward.