The market supply curve of capital is
a. upward sloping
b. perfectly inelastic
c. upward sloping at first but then bends backward
d. downward sloping
e. perfectly elastic
QUESTION 2The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then
a. eliminating the first 20 tons of pollution is cheaper than eliminating the last 20 tons
b. eliminating the last 20 tons of pollution is cheaper than eliminating the first 20 tons
c. more damage will be done by the first 20 tons of pollution than by the last 20 tons
d. more damage will be done by the last 20 tons of pollution than by the first 20 tons
e. the optimal level of air quality is to reduce pollution by 700 tons
QUESTION 3The market supply curve of labor is
a. upward sloping
b. perfectly inelastic
c. upward sloping at first but then bends backward
d. downward sloping
e. perfectly elastic
QUESTION 4The marginal social benefit of air quality
a. declines as air quality increases
b. rises as air quality increases
c. remains constant as air quality increases
d. first falls then rises as air quality increases
e. is always negative
QUESTION 5The market supply curve of a resource is
a. downward sloping
b. upward sloping
c. horizontal at the market price
d. vertical
e. determined by firms
QUESTION 6The marginal social cost curve is downward sloping under variable technology.
a. True
b. False
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