A Pigouvian subsidy leads to a socially efficient outcome by ________

A) raising individuals' marginal benefit from consumption
B) lowering the marginal private cost of production
C) raising the marginal external benefit from consumption
D) lowering the marginal external cost of production


A

Economics

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The actions of speculators in a market tend to shift the ____ when the price of the good is low and thereby ____ the price

a. demand curve out; raise b. demand curve in; lower c. supply curve out; lower d. supply curve in; raise

Economics

An agreement between two duopolists to function as a monopolist usually breaks down because

a. they cannot agree on the price that a monopolist would charge. b. they cannot agree on the output that a monopolist would produce. c. each duopolist wants a larger share of the market to capture more profit. d. each duopolist wants to charge a higher price than the monopoly price.

Economics

When statisticians fail to take into account improvements in the quality of goods and services, the CPI will tend to ________ the rate of inflation.

A. overstate B. be unrelated to C. precisely measure D. understate

Economics

If there are concerns about moral hazard and adverse selection in a country

A. economic growth will reduce. B. there will be more foreign direct investment. C. it will be easier to arrange financing for new development projects. D. there will be more portfolio investment.

Economics