The many goods and services that are sold below the radar, outside of official records take place in the:
A. illegal economy.
B. soft market.
C. underground economy.
D. None of these statements is true.
Answer: C
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An example of the command-and-control approach to environmental policy is:
a. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). b. requiring car producers to install new air conditioners that do not use freon. c. allowing coal producers to buy and sell permits to allow CFC emissions. d. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
As more of a product is consumed, total utility increases until
A) marginal utility increases at an increasing rate. B) average utility increases at an increasing rate. C) marginal utility is negative. D) average utility decreases.