If the marginal cost of pollution abatement differs across firms, then regulations that require all polluters to reduce pollution by a fixed proportion will be:

The central issue in the stabilization policy debate is

A) the effectiveness of monetary policy and fiscal policy. B) the effectiveness of fiscal policy, but not monetary policy. C) the role of money in the inflationary process. D) the location of the sources of economic instability in the economy.

Efficient production occurs if a firm

A) cannot produce its current level of output with fewer inputs. B) given the quantity of inputs, cannot produce more output. C) maximizes profit. D) All of the above.