As a general rule, if pollution costs are external, firms will produce:
a. too little of a polluting good.
b. too much of a polluting good.
c. an optimal amount of a polluting good.
d. cannot be determined without additional information.
b
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In the former Soviet Union most of the farmland was in the form of _____________________.
Fill in the blank(s) with the appropriate word(s).
Programs to equalize individual income would most help ______.
a. medium-income single people b. low-income large families c. high-income married couples d. high-income single people
Exhibit 5-4 Gross domestic product data National income accountBillions ofdollars Depreciation$ 800 Net interest1,500 Compensation of employees4,000 Profits1,000 Rental income 100 Indirect business taxes 600 Consumer purchases1,000 As shown in Exhibit 5-4, national income (NI) is:
A. $6,000 billion. B. $6,600 billion. C. $7,200 billion. D. $8,000 billion.
The downward slope of the Phillips curve suggests that
A. policy makers face a trade-off between inflation and unemployment. B. a decrease in the money supply will stimulate aggregate demand. C. an increase in the price level will depress nominal wages. D. an increase in the price level will increase the money supply.