If society allows firms to freely pollute the environment, then which of the following is true?
a. Market equilibrium output will be equivalent to the efficient output level.
b. Market equilibrium output will be too low relative to the efficient output level.
c. Market equilibrium output will be too high relative to the efficient output level.
d. The efficient output level can be achieved by giving firms a subsidy for the pollution they generate.
c
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If a minimum wage is set above the equilibrium market wage,
A) lower-skilled workers will have an easier time finding jobs. B) the quantity of labor demanded will be below the quantity of labor supplied. C) the quantity of labor supplied will be below the quantity of labor demanded. D) highly-skilled workers will have a harder time finding jobs.
As growth progresses and countries become richer, pollution tends to fall.
Answer the following statement true (T) or false (F)