Which of the following is an example of a permanent resource ...

[bucstennis@aim.com]

Which of the following is an example of a permanent resource price differential?
 a. When the price of oil increases, oil exploration increases.
  b. When the price of CDs falls, CD production decreases.
  c. When demand for land in a city increases, its price increases above prices of land elsewhere.
  d. When demand for computer programmers increased, more people went into that field.
  e. When the price of oil rose, demand for solar panels increased.

Question 2

The optimal level of water and air quality
 a. is zero, which is a pollution-free environment
  b. occurs when the marginal private cost of air quality equals its marginal social cost
  c. is greater if the marginal social cost curve of air quality shifts downward
  d. occurs when all negative externalities are eliminated
  e. eliminates the common pool problem

[brittrenee]

Answer to Question 1

C

Answer to Question 2

C

[bucstennis@aim.com]

Excellent

[kthug]

TYSM