A firm that generates pollution is illustrated in Figure 9.7. If the government imposes a pollution tax equal to P1, the marginal benefit to the firm of abating A2 is:

Explain what is happening to spending on Social Security and Medicare as the U.S. population continues to age. Why might this spending change pose problems for the U.S. economy?

What will be an ideal response?

Persons who do not hold a job, but are actively seeking work are considered: a. out of the labor force

b. unemployed. c. unemployable, and not counted in official statistics. d. underemployed.