If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will
a. emit a lower level of smoke than is socially efficient.
b. emit a higher level of smoke than is socially efficient.
c. emit an acceptable level of smoke.
d. not emit any smoke in an attempt to avoid paying the entire cost.
b
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An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus
Indicate whether the statement is true or false
Negative externalities cause loss of welfare not transmitted by market factors.
A. True B. False C. Uncertain
Which of the following is not a common response to the moral hazard problem that employers face?
a. offering all employees some funding for additional education b. paying efficiency wages c. requiring employees to provide itemized receipts for reimbursable expenses d. paying year-end bonuses rather than higher monthly earnings
Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is:
A. devalued. B. overvalued. C. revalued. D. undervalued.