Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated.
B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost.
C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.
C
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Those economists who believe that the economy is self-regulating argue that wages are flexible, so they think that the economy can remove itself from a recessionary gap without government intervention
Indicate whether the statement is true or false
Payments to households not in exchange for goods and services currently produced are:
A. transfer payments. B. government purchases. C. consumption expenditures. D. investment expenditures.