When the economy is operating well below capacity, an increase in spending tends to be reflected primarily in a(n):
a. lower level of employment.
b. increase in price.
c. lower level of output.
d. higher level of output and employment.
e. increase in business failures.
d
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According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid
subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of A) marginal thinking. B) rational self interest. C) using assumptions to simplify. D) ceteris paribus.
Puerta Vallarta International Airport is near the coast. At night planes take off and land from the west, over the water. During the day planes approach and leave from the east, over Puerta Vallarta neighborhoods. Night flights into and out of Puerta Vallarta are more dangerous than day flights. Which rights are in conflict in this situation?
a. residents' right to enjoy the ocean and their right to peace and quiet b. residents' right to enjoy the ocean and air passengers' right to enjoy the ocean c. residents' right to peace and quiet and air passengers' right to safety d. residents' right to peace and quiet and safety e. air passengers' right to safety and convenience