An increase in pollution has caused a permanent increase in the rate of capital depreciation. This would cause:
a. an increase in the capital-labor ratio.
b. output per worker to fall.
c. an increase in consumption per worker.
d. the capital-labor ratio to be unaffected.
Macroeconomics is a branch of economics focused on studying how general economic factors such as national productivity, inflation, and interest rates affect the economy's operation as a whole. These factors are used in regulating the stability and growth of an economy. Besides, macroeconomics deals with economies at the national, regional, and global levels. It is the opposite of microeconomics that deals with individual and household decision-making and how it affects the economy.
Answer and Explanation: 1
The answer is B. An increase in pollution has caused a permanent increase in the rate of capital depreciation. This would cause output per worker to...
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fromChapter 18 / Lesson 10
Learn about the economics of pollution and understand how air pollution relates to economic development. Explore the marginal cost of pollution in economics.