A specific tax in a monopoly market equal to the marginal harm of pollution
A) will increase welfare.
B) will decrease welfare.
C) will leave welfare unchanged.
D) All of the above are possible.
D
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Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?
a. Indexed funds generally have better stock pickers. b. Indexed funds engage in more detailed research. c. Indexed funds have lower operating costs because they engage in less stock trading. d. Indexed funds earn a significantly higher rate of return than a broad portfolio that represents the entire stock market.
According to the following graph, at point A,
The price of Y is $50.
A. the consumer can exchange two units of X for one unit of Y and keep income unchanged. B. the consumer can exchange two units of X for one unit of Y and keep utility unchanged. C. the consumer receives twice as much marginal utility from X as from Y. D. both a and b E. all of the above
Some agricultural sub-Saharan nations of Africa have overfarmed and overgrazed their land to the extent that significant portions of it have turned into desert. This suggests that:
A. the production possibilities curves of such nations are more bowed out from the origin. B. the production possibilities curves of such nations have shifted inward. C. the production possibilities curves of such nations have shifted outward. D. these nations are operating at some point outside of their production possibilities curves.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.