Why does it usually NOT make sense to reduce pollution to zero?
What will be an ideal response?
The marginal benefits from reducing pollution are likely declining while the marginal costs are usually rising. If pollution is reduced to zero, it will be very costly to reduce the last few increments of pollution with little benefit to society.
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If a firm expects that the price of its product will be higher in the future than it is today, then
A) the firm has an incentive to decrease supply now and increase supply in the future. B) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future. C) the firm has an incentive to increase supply now and decrease supply in the future. D) the firm will go out of business.
The demand curve, which assumes that competitors will follow price decreases but not price increases, is called
A) an industry demand curve. B) an inelastic demand curve. C) a kinked demand curve. D) a competitive demand curve.
The introduction of refrigerators into American homes:
A) decreased the magnitude of the short run own price elasticity of demand for raw meat. B) did not affect the short run own price elasticity of demand for raw meat. C) increased the magnitude of the short run own price elasticity of demand for raw meat. D) decreased the magnitude of the short run own price elasticity of demand for smoked meats.
Showing the government's budget deficit as a percentage of nominal GDP is a simple way to correct for the effects of both inflation and the ability of the economy to handle the deficit.
What will be an ideal response?