Which of the following statements is correct?
a. The use of pollution permits and corrective taxes reduces the cost of environmental protection.
b. Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
c. Clean water and clean air are goods to which the law of demand applies.
d. All of the above are correct.
d
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The desired reserve ratio is 10 percent. Fly By Night Bank has deposits of $250,000 and reserves of $25,000. What is the amount of its excess reserves?
What will be an ideal response?
The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.