Less of an economy's resources will be channeled into building new factories and equipment when:
a. interest rates are high.
b. households decide to save more of their income.
c. firms are optimistic about their future profits.
d. aggregate income increases.
e. an economy has a trade deficit.
Question 2
From an economic viewpoint, the optimal amount of pollution:
a. is zero since all pollution imposes costs on society.
b. is that amount which firms create when they maximize economic profits by setting their marginal private costs equal to market price.
c. is that amount where the marginal social costs of producing a good precisely equals the price of the good.
d. b and c are correct.
Teresa Hubbard and Alexander Birchler, Detached Building.
Louis H. Sullivan, Bayard-Condict Building, New York.
The answer to “What is the proper role of children in an economy?” varies by social class, ...
Latin America in the Global Economy
Lego building blocks birthday cake
Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ...