Explain why the optimal amount of pollution is often not zero
What will be an ideal response?
The optimal amount of pollution occurs when the production decision includes the cost of pollution. Some pollution may exist with the optimal level of production because although pollution is harmful, production of goods is beneficial. A trade-off between the harm of pollution and the benefits of production leads to some pollution.
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________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pre-group levels
A) Trade creation B) Trade diversion C) Trade exclusion D) Trade distortion
An economy is considered a small open economy if it
A) is too small to affect the world real interest rate. B) has GDP less than 1% of world GDP. C) doesn't trade internationally. D) has a zero trade balance.
Use the idea of interpersonal comparisons of utility to argue for a progressive income tax system where people in higher income brackets are charged higher tax rates on their extra income
The difference between an international corporation and a multinational corporation is that the international corporation
a. produces in North America while the multinational corporation produces worldwide b. sells its products in North America while the multinational corporation sells its products worldwide c. sells only products while the multinational corporation sells products and services d. produces only in the home country while the multinational corporation produces in two or more countries e. exports goods and services while the multinational corporation imports goods and services