Answer the following statement true (T) or false (F)
1) Cost-benefit analysis is frequently difficult to apply because it is difficult to quantify the full
benefits of a public good or service.
2) Society's optimal amount of pollution abatement is where society's marginal benefit of
abatement is zero.
3) An improvement in the technology of pollution control is likely to increase society's optimal
amount of pollution abatement.
4) Society's marginal cost of pollution abatement curve slopes upward because of the law of
diminishing marginal utility.
5) (Consider This) The principle that private negotiation can resolve potential externalities without
resort to government intervention is known as the Coase theorem.
1) T
2) F
3) T
4) F
5)T
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In the presence of positive production externalities, a monopolist might produce the efficient output level.
Answer the following statement true (T) or false (F)
An individual's annual salary is her
A) money. B) income. C) wealth. D) liabilities.
Estimates of the North American Native American population in 1491:
a. range in hundreds of billions. b. range in the hundreds of thousands. c. range in the millions. d. range in the tens of thousands.
A tax on sellers:
A. causes equilibrium price to increase and equilibrium quantity to decrease. B. cause equilibrium price and quantity to increase. C. cause equilibrium price and quantity to decrease. D. cause equilibrium price to decrease and equilibrium quantity to increase.