What is an isocost line? Write the equation used for an isocost line
What will be an ideal response?
An isocost line is a line that shows all of the combinations of capital and labor that are available for a given cost. The equation used for an isocost line is
(PK ? K) + (PL? L)
= TC.
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Externalities can be positive or negative. An example of a positive externality is the third-party benefits from solar energy production such as reduced emissions, cleaner air, and the "warm glow" some people experience from engaging in sustainable activities. An example of a negative externality is the emissions produced from driving gasoline powered motor vehicles such. These emissions have been shown to adversely effect the environment, agriculture, and human productivity, morbidity, and mortality. Which of the following policies would NOT incentivize consumers or producers to internalize external costs of the activities they engage in?
a. Driving subsidies to automobile drivers. b. Production subsidies to manufacturers of solar energy equipment such as photovoltaic cells and batteries. c. Driving taxes to automobile drivers. d. Consumption subsidies to buyers of solar energy equipment such as photovoltaic cells and batteries. e. None of the above.
The International Monetary Fund (IMF) is an international organization designed to
A) promote world economic growth via loans to developed nations. B) promote world economic growth by means of greater financial stability. C) circulate a single currency worldwide. D) act as the world's central bank.