Burning coal to generate electricity can create pollution. If the market for generating electricity is competitive and is allowed to operate without any government intervention, is the equilibrium quantity of coal burned equal to, more than, or less
than the efficient quantity?
The equilibrium quantity of coal burned is more than the efficient quantity. In a market for a good with an external cost, an unregulated competitive market will have an equilibrium quantity that exceeds the efficient quantity.
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Suppose a regression with 51 observations returns a regression sum of squares of 56,000 and a total sum of squares of 250,000. The associated residual sum of squares is:
A. 200,000. B. 194,000. C. 150,000. D. None of the choices.
Which of the following characteristics is generally representative of developed countries relative to developing countries?
A. a lower infant mortality rate B. a lower rate of literacy C. lower productivity in the agriculture sector D. a larger percentage of the labor force in rural areas