Answer to Question #189236 in Macroeconomics for James

Question

QUESTION 5

In a market with no anti-pollution restrictions, firms:

1. Cannot exist.
2. Can dispose of certain wastes only by paying an appropriate tax.
3. Can dispose of certain wastes only by paying an inappropriate tax.
4. Can dispose of certain wastes absolutely free.
5. Cannot dispose of wastes.

QUESTION 6

Taking the additional external costs of pollution into account results in:

1. A lower quantity of production.
2. A lower quantity of pollution.
3. A higher price.
4. All of the above.
5. None of the above.

QUESTION 7

The supply curve is based on choices about production that firms make while:

1. Looking at their marginal costs.
2. Looking at their fixed costs.
3. Looking at their total costs.
4. Looking at their implicit costs.
5. None of the above. 

QUESTION 8

The demand curve is based on the benefits that individuals perceive while:

1. Watching the ballgame.
2. Maximizing their utility.
3. Minimizing their utility.
4. Maximizing their profit.
5. Minimizing their profit.

Answer 1

5. Option 4

6. Option 5

7. Option 1

8. Option 2