Author Question: Less of an economy's resources will be channeled into building new factories and equipment when: a. ... (Read 140 times)

theo

  • Hero Member
  • *****
  • Posts: 698
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.



jojobee318

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

a

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

For a complete list of videos, visit our video library