The optimal level of crime control is achieved where
A. the police officers' association is satisfied.
B. the marginal reduction in the expected cost of crime equals the marginal cost of prevention.
C. the total reduction in the expected cost of crime equals the total cost of prevention.
D. the average reduction in the expected cost of crime equals the average cost of prevention.
Answer: B
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Because producers do not bear the external cost of pollution,
A) private production exceeds the economically efficient level. B) the economically efficient level of production is achieved. C) private production is below the economically efficient level. D) the market price for the product being produced by the pollution-generating company is too high.
Discuss the quantity theory of money. Be sure to mention the velocity of circulation and the equation of exchange
What will be an ideal response?
Adam Smith's invisible hand refers to
A) the laws of nature that influence economics decisions. B) the government's unobtrusive role in ensuring that the economy functions efficiently. C) property ownership laws and the rule of the court system. D) the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.
When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if
A) current capital decreases. B) current total factor productivity decreases. C) future total factor productivity decreases. D) current or future taxes increase.