From an economic standpoint, the amount of pollution should be
A) zero.
B) the amount that allows firms to maximize profits.
C) the amount where firms are earning a normal rate of return on investment.
D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
Answer: D
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In general, the higher a person's education level,
a. the higher the person's earnings. b. the more physically attractive the person is likely to be. c. the more socially outgoing the person is likely to be. d. All of the above are correct.
Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. An increase in the price of X can be expected to:
A. decrease the demand for Z. B. increase the demand for Z. C. have no effect on the demand for Z. D. decrease the supply of Z.