The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising ________
A) 0 goats
B) 40 goats
C) 50 goats
D) 55 goats
B
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Assume two people, Tom and Rose, live for two periods and are taxed on consumption in both periods. In period 0, Rose has consumption of 50. In period 1, Rose has consumption of 50. Tom has consumption of 40 in period 0. Use the formula below for lifetime consumption tax liability, R i , to find out what Tom's period 1 consumption must be, to ensure that tax liabilities between the two are equal, if the consumption tax rate is 9% and the rate of interest is 4%,
Which economic concept does the expression "time is money" reflect?
a. opportunity cost b. specialization c. market exchange d. comparative advantage e. efficiency
In the short run, a firm that finds itself earning a loss should compare the market price to which cost in order to determine how to minimize its losses?
A. Marginal costs B. Fixed costs C. Average total costs D. Average variable costs
Which of the following is an example of a surplus item on the balance of payments?
A. purchases of gold from foreign residents B. interest receipts from foreign residents C. private gifts to foreign residents D. public gifts to foreign residents