Should the level of pollution be reduced to zero, and if not, then to what level?
What will be an ideal response?
No, the level of pollution should not be reduced to zero because the benefits of doing so may not justify the costs of doing so. Pollution should be reduced to the level where the polluting companies are internalizing the externality generated by pollution.
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According to the table shown, what can be said about the cost of living in 2012?
A. The typical consumer must spend 5 % more in 2012 than he did in 2011 in order to buy the same goods.
B. Every consumer will experience a 5 % increase in his cost of living from 2011.
C. Whatever consumers bought in 2012 cost 5% more than what they spent in 2011.
D. None of these statements is true.
Suppose each of the 50 states had only one gasoline station, and all stations were the same size. The four-firm concentration ratio for the state of New York, based on the state data, is:
A. 0.08. B. 0.16. C. 1.0. D. 0.32.