The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt
A) 0¢
B) 10¢
C) 20¢
D) 15¢
E) 5¢
B
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When a binding price floor is imposed on a market for a good, some people who want to sell the good cannot do so
a. True b. False Indicate whether the statement is true or false
Suppose the MPC is .6 and consumption increases by $6 billion. Consequently, total income through the multiplier effect will:
a. Increase by $12 billion b. Decrease by $15 billion c. Increase by $15 billion d. Increase by $10 billion
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Explain why current account deficits may or may not be harmful to a country
What will be an ideal response?