What adjustments must be made to total income to make it equal GDP?
What will be an ideal response?
Total income is net domestic product at factor cost. To convert it to gross domestic product at market prices, we must add the depreciation of capital and add indirect taxes minus subsidies.
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Suppose the monopolist only sold the goods separately. What price will the monopolist charge for Good 2 to maximize revenues for good 2?
a. $2,300 b. $2,800 c. $1,200 d. $1,700
Answer the following statement(s) true (T) or false (F)
1. From an economic perspective, the zero discharge goal meets the efficiency criterion by accounting for both the benefits and costs of that objective. 2. According to available data, most water bodies in the United States have met the zero discharge goal. 3. The effluent limitations are set to maximize net benefits. 4. Because the effluent limitations are set uniformly, achieving a cost-effective solution is unlikely. 5. In order for the effluent limitations to achieve cost-effectiveness, the MACs of all polluters would have to be equal.