When negative externalities like pollution exist, competition leads to:
A. a socially efficient outcome.
B. too few goods being bought and sold.
C. a market equilibrium price that is too high.
D. more production than would be efficient.
Answer: D
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A production possibilities curve is plotted for a nation producing cotton and jute. Which of the following will cause a parallel rightward shift of the production possibilities curve?
A) An invention of a new fertilizer that increases cotton production by ten percent, without any effect on jute production B) An invention of a new fertilizer that increases jute production by five percent, without any effect on cotton production C) An invention of a new fertilizer that increases production of both cotton and jute by ten percent D) A two-times increase in the price of all cotton products and a three-times increase in the price of all jute products
The demand curve for land will shift to the right because of a(n): a. decrease in the demand for agricultural produce. b. increase in the emigration of skilled workers
c. increase in the demand for residential apartments. d. decrease in the disposable income of the residents.
A short-run production function was estimated asQ = ?0.002L3 + 0.16L2At 20 units of labor, what is marginal product?
A. 1.9 B. 6.3 C. 6.0 D. 2.4 E. 4.0
Which of the following is included in the expenditures approach to GDP?
A. Government spending on welfare payments B. Spending on meals by consumers at restaurants C. Spending on used clothing at garage sales D. The value of stocks and bonds bought by businessmen