The optimal rate of pollution occurs where
A. The marginal benefit of pollution abatement is zero.
B. Pollution is reduced to zero.
C. MR = MC for the production of the good that produces pollution.
D. The marginal benefit equals the marginal cost of pollution abatement.
Answer: D
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If it were not for the automatic stabilizers in the U.S. economy,
a. the Federal Reserve would have less reason than it has now to monitor stock prices. b. it would be more desirable than it is now for the Federal Reserve to target an interest rate. c. a strict balanced-budget rule would be more desirable than it is now. d. output and employment would probably be more volatile than they are now.
Refer to the given figure.
If the Federal Reserve wants to set the nominal interest rate at 1 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 900 B. sales; 900 C. purchases; 300 D. sales; 100
If the price were $11, how much would the firm's output be in the short run?
A monopolistically competitive firm differs from a perfectly competitive firm in the long run in that
A) the demand curve faced by a monopolistically competitive firm is downward sloping, while the demand curve faced by a perfectly competitive firm is horizontal. B) profits are positive for a monopolistically competitive firm and zero for a perfectly competitive firm. C) profits are zero for a monopolistically competitive firm and positive for a perfectly competitive firm. D) marginal cost equals the market price for a monopolistically competitive firm but not for a perfectly competitive firm.