In terms of cost-benefit analysis, explain why a competitive market with an externality produces too much pollution
What will be an ideal response?
At the socially optimal level of production, welfare is maximized and the marginal benefit from less pollution equals the marginal cost of less output. However, a competitive market with an externality produces more pollution than is socially optimal, and the marginal cost of less output is greater than the marginal benefit from less pollution.
Economics
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The ways in which monetary policy affect output and prices are known as:
A) channels B) stations C) vehicles D) means
Economics
After looking at this year’s Census figures on income, your friend Eddie remarks disgustedly, “Income inequality is such a major problem in this country.” How might you use the consideration of time to temper his statement?
What will be an ideal response?
Economics