If pollution is reduced below the socially efficient level:
a. the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement
b. the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
c. the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
d. nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.
a
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Explain the paradox of value
What will be an ideal response?
When a perfectly competitive firm is in long-run equilibrium, it and all other firms are on the lowest point of their average cost curves
Indicate whether the statement is true or false
Exhibit 15-1 Disposable income and consumption data Income (Y) Change inDisposable Income Consumption (C) 0 500 1,000 1,000 1,400 2,000 1,000 2,200 3,000 1,000 2,900 4,000 1,000 3,500 5,000 1,000 4,000 In Exhibit 15-1, when disposable income is increased from $2,000 to $3,000 to $4,000,
A. total consumption increases by $1,000. B. the marginal propensity to consume remains constant. C. the marginal propensity to consume decreases from 0.7 to 0.6. D. the marginal propensity to consume decreases from 0.8 to 0.7.
In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y - C - T B) Y - G - T C) Y - G - T + TR D) Y + TR - C - T