Paddy and Mick live in a small town. They burn coal to keep their houses warm at night. However, this burning of coal is harming the air quality of the neighborhood. Both Paddy and Mick could install air filters on their chimneys. These filters cost $50 each. Each filter provides a social benefit of $80, but those benefits are divided equally among Paddy and Mick. If both Paddy and Mick install
the filters, together they will _____.
a. gain $10
b. gain $0
c. lose $20
d. gain $30
c
Economics
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Economists say that long-run economic growth is almost entirely due to:
A. rising productivity. B. population growth. C. a democratically elected government. D. a balanced budget.
Economics
An increase in the saving rate will affect which of the following variables in the long run?
A) output per worker B) capital per worker C) the level of investment D) all of the above
Economics