If two countries are economically identical except that there is significant air and water pollution in one, then the level of GDP:

A. will be the same in both countries.
B. will be higher in the country with no pollution.
C. will be higher in the country with pollution.
D. will be greater than the level of economic well-being in each country.

Answer: A

Economics

You might also like to view...

A barter system of payment is

A) different from a money system of payment because money does not require a double coincidence of wants. B) similar to a money system of payment because both require a double coincidence of wants. C) different from a money system of payment because the barter system is a better unit of account. D) similar to a money system of payment because both use one asset as a unit of account. E) similar to a money system of payment because both are used as stores of value and units of account.

Economics

The problem of production in multi-plant firms with asymmetric information can be solved by paying the manager

A) a piece rate, some constant amount per unit of output produced. B) a larger amount for each unit than was paid for the previous unit, to reflect increasing marginal cost. C) a smaller amount for each unit than was paid for the previous unit, to reflect decreasing marginal revenue. D) an annual bonus that increases with each unit of output up to capacity, and decreases with each unit of output past capacity. E) an annual bonus that is calculated decreases with each unit of output up to capacity, and increases with each unit of output past capacity.

Economics