"The optimal level of pollution is zero." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. There are costs to cleaning up pollution. Therefore, the optimal level of pollution arises at the point at which the marginal benefit from further reducing pollution equals the marginal cost of further reducing pollution.
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The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care
A) most B) very little C) all D) less than half
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $450 per month as the legal maximum rent, consumer surplus will be
A) a. B) a + b + f. C) a + b + c. D) a + b + c + f + g.