An increase in the price level in the United States will reduce imports and increase exports
Indicate whether the statement is true or false
FALSE
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Which of the following is an example of an external benefit?
A) a ton of coal burned in a power plant to produce electricity B) a car accident that crowds a major Los Angeles freeway C) the production of a slice of pizza D) the cleanup of a large lake E) the consumption of a can of Mountain Dew
In a situation in which property rights are not well-defined and social costs exceed private costs, government can use all of the following to induce producers to bring private costs into alignment with social costs EXCEPT
A) taxing production. B) coercive limits on production. C) subsidization of production. D) regulation of production.
Exhibit 10-5 A perfectly competitive labor market ? Quantity of Labor (thousands) Marginal Revenue Product Wage Rate 5 $25.00$ 5.00 10 20.0010.00 1515.0015.00 2010.0020.00 255.0025.00? ? In Exhibit 10-5, when the marginal revenue product is $20.00, firms should
A. continue hiring workers. B. stop hiring workers. C. start firing workers. D. pay a wage above $15.00 to its workers
If the demand for illegal drugs is inelastic, then a government policy that causes illegal drug price to rise would cause those who support their drug habit by property theft to:
A. increase their theft to pay for their drugs. B. increase their drug dependency. C. reduce their theft to pay for their drugs. D. end their drug dependency.