Refer to the above figure. It represents supply and demand for The Black Ash Steel Company's output. The firm's plant belches large quantities of smelly fumes and black ash into the air
Residents in the surrounding area have higher medical bills as a result. If the firm is forced to pay the full social cost of its production, what will occur? A) Black Ash's supply curve will shift from SA to SB.
B) Demand for the firm's steel will shift to the left.
C) The company's supply curve will shift from SB to SA.
D) Black Ash will increase its own output to cover the cost increase.
C
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Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments, a country might find itself impoverished and without an adequate supply of circulating monetary gold as a result of balance of
payments deficits.
An important contributor to rising U.S. health care costs in recent years is
A) less interest on the part of Americans to stay physically fit. B) the increasing proportion of the population that smokes. C) an easing of standards at medical schools that has permitted unqualified people to become physicians. D) the aging of the population.
Nicole has just finished high school and started looking for her first job, but has not yet found one. As a result, the unemployment rate
a. increases, and the labor-force participation rate is unaffected. b. increases, and the labor-force participation rate increases. c. is unaffected, and the labor-force participation rate increases. d. increases, and the labor-force participation rate decreases.
If nation A can produce a product at a lower opportunity cost per unit than nation B, nation A
A. has a specialization advantage. B. has an absolute advantage. C. has a comparative advantage. D. has a production advantage.