What factors must countries with different income levels and political preferences balance when determining the allocative efficiency of environmental regulations?
a. Economic output versus environmental protection
b. Marginal costs versus productive efficiency
c. Productive efficiency versus unproductive inefficiency
d. The value of the past versus the value of the present
a. Economic output versus environmental protection
Depending on their different income levels and political preferences, countries are likely to make different choices about allocative efficiency—that is, the choice between economic output and environmental protection along the production possibility frontier. However, all countries should prefer to make a choice that shows productive efficiency—that is, the choice is somewhere on the production possibility frontier rather than inside it.
You might also like to view...
What is outlet bias?
A) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality B) the tendency for households to spend their money at discount stores as prices rise C) the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices D) the tendency for households to spend more money over time
Which of the following describes what the Fed would do to pursue an expansionary monetary policy?
A) use discount policy to raise the discount rate B) use open market operations to sell Treasury bills C) raise the reserve requirement D) use open market operations to buy Treasury bills
Long-run equilibrium for a perfectly competitive industry occurs when:
A. P = MC = ATC. B. P = MC = AVC. C. P = MC = AFC. D. P > MC = ATC.
The fair value of a good is not a subjective measure
Indicate whether the statement is true or false