When a firm creates negative externalities by polluting, in order to achieve the socially efficient outcome:
a. the firm's production should be prohibited
b. the firm's production should be increased and the price of its output should be decreased.
c. the firm's production should be increased and the price of its output should be increased.
d. the firm's production should be reduced and the price of its output should be increased.
d
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Labor productivity increases if
i. human capital decreases. ii. technology advances. iii. quality of education decreases. A) Both ii and iii B) Both i and ii C) i only D) ii only E) iii only
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.
As new firms enter an increasing-cost industry
A. the LRAC curve shifts up. B. the position of the LRAC curve doesn't change, but firms move down their LRAC curve. C. the position of the LRAC curve doesn't change, but firms move up their LRAC curve. D. the LRAC curve shifts down.
Which of the following is a central bank asset?
A) domestic securities and bills B) currency notes C) bank reserve deposits D) government deposits