If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

The marginal productivity theory of income states that a person's total income is determined by

A) how much the individual works. B) how profitable the firm the individual works for is. C) how much the individual has inherited. D) the amount and productivity of factors of production the individual owns.

The most efficient way to get firms to reduce pollution is to

A) set uniform emission standards and require all firms to meet the standards. B) make the worst polluters shut down and go out of business. C) make them pay for the social costs of production and let them decide how to respond to the higher costs. D) provide firms and consumers with the information about the effects of their actions and encourage them to behave responsibly.