Why is it not efficient to eliminate all pollution?
What will be an ideal response?
Eliminating pollution is a task that uses resources, so there is an opportunity cost. If the marginal social cost of eliminating another unit of pollution is greater than the marginal social benefit, it would not be an efficient use of resources to eliminate the pollution because there are other activities with a higher value to society. In other words, pollution elimination is similar to any other good: pollution should be eliminated until the marginal social benefit of pollution reduction equals the marginal social cost of pollution reduction.
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In the research that used the audit method to send 38 people to purchase new cars from car dealers in Chicago, the highest prices were quoted to
A) black women. B) white women. C) black men. D) white men.
All of the following are possible explanations for why it took so long for trade balances to respond to the depreciation of the dollar EXCEPT
A) the prior increase in the value of the dollar had padded the profit margins of foreign producers. B) foreign trade barriers made it impossible for the United States to substantially expand exports it bought. C) there were still impacts from earlier appreciations working through the system. D) exports began to increase from a much lower base than imports. E) None of the above. That is, A, B, C, and D are all correct.
Monopoly Industry is one where
a) There is only one producer. b) There are several producers. c) There are significant barriers to the entry of new firms. d) There is one producer and there are barriers to the entry of new firms.
An increase in the interest rate will increase consumption spending
a. true b. false