Since resources are abundant, we do not have to make choices about their use

When the selling price of a good goes up, what is the relationship to the quantity supplied?

a) the cost of production goes down b) The profit made on each item goes down c) It becomes practical to produce more goods d) There is no relationship between the two

If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the

a. most effective policy action would be a subsidy to firms for the reduction of emissions. b. most effective policy action would be a tax on polluting firms. c. appropriate course of action for government is to do nothing. d. appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.