If firms pollute when they produce:
a. marginal social cost equals marginal private cost.
b. marginal private cost exceeds marginal social cost.
c. marginal social cost exceeds marginal private cost.
d. marginal social cost equals marginal external cost.
c
Economics
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Which of the following is a dynamic game?
A) rock-paper-scissors B) flipping pennies C) chess D) the card game "war"
Economics
The tendency for people to behave in a riskier way or to renege on contracts when they do not face the full consequences of their actions is called:
A. collective bargaining. B. adverse selection. C. moral hazard. D. counter information.
Economics