Author Question: As a general rule, if pollution costs are external, firms will produce: a. too little of a ... (Read 113 times)

FButt · **on:** Jun 30, 2018

As a general rule, if pollution costs are external, firms will produce:
a. too little of a polluting good.
b. too much of a polluting good.
c. an optimal amount of a polluting good.
d. cannot be determined without additional information.

Question 2

When a customer deposits 1,000 in a bank, the deposit is:
a. an asset of the Federal Reserve.
b. included in M1 if it is currently in a commercial bank's vault.
c. a liability to the customer.
d. an asset to a commercial bank if it is currently in the bank's vault.
e. a liability for the bank as the bank owes it to the customer.