Author Question: From an economic perspective, the socially best amount of pollution control is that amount in which: ... (Read 46 times)

bb · **on:** Jun 30, 2018

From an economic perspective, the socially best amount of pollution control is that amount in which:
a. there is zero pollution.
b. the private plus external marginal costs are equal to the private plus external marginal benefits.
c. the private plus external marginal costs are less than the private plus external marginal benefits.
d. the private marginal costs are equal to the private marginal benefits.
e. the external costs equal the external benefits.

Question 2

If a bank has 50,000 in excess reserves at the end of a business day and the required reserve ratio is 20 percent, the bank can increase its profits by:
a. keeping the excess reserves.
b. loaning out 40,000.
c. loaning out 50,000 to another bank.
d. borrowing 50,000 to remove the excess reserves.
e. keeping 10,000 and depositing 40,000 with the Fed.