If the marginal benefit of reducing water pollution is constant at $10 per ton, then it is efficient to reduce water pollution:
A. to zero.
B. until the marginal cost of reducing water pollution equals $10 per ton.
C. as long as the marginal cost of reducing water pollution is greater than $10 per ton.
D. to whatever level the market determines.
Answer: B
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Tacit collusion is
a. collusion which is carried out without any explicit agreement among firms. b. collusion about tacits, rather than strategy. c. agreements which are sponsored by government. d. similar to pure competition.
Which of the following events occurred during the 2000 to 2005 time-frame and had an important impact on the deficit/surplus projections?
A. The steep decline in taxable capital gains that resulted from declines in the Stock Market from March 2000 to the end of 2002 B. The decrease in unemployment rates from 2002 to 2003 C. The increase in interest rates from 2001 to 2003 D. The increase in inflation rates from 2000 to 2002