When underproduction occurs,
A) producers gain more surplus at the expense of consumers.
B) marginal cost is greater than marginal benefit.
C) consumer surplus increases to a harmful amount.
D) there is a deadweight loss that is borne by the entire society.
E) the deadweight loss harms only consumers.
D
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Suppose cars are taxed according to the amount of pollution they emit per gallon of gasoline consumed. We would expect to observe all of the following EXCEPT
A) an increase in quantity demanded of less-polluting automobiles and a reduction in quantity demanded of more-polluting automobiles. B) an increase in quantity demanded of more fuel-efficient cars. C) an increase in production of automobiles that were less polluting. D) an increase in the miles driven.
Which of the following must be in place for the Coase theorem to work?
a. A pollution charge placed on specific amounts of pollution b. A marketable permit program c. Strongly defined private property rights d. Specific types of technology used
If the Fed raises the discount rate, what will be the effect on the money supply?
A. It will decrease the money supply. B. It will increase the money supply. C. No change in the money supply D. Not enough data to give an answer
Using cost plus pricing, what is the price if ATC = $23.50 and the target rate of return is 17 percent?
A. $29.38 B. $138.24 C. $46.74 D. $28.31