The government corrects for externalities in all of the following ways EXCEPT
A) taxes.
B) regulation.
C) lobbying.
D) subsidies.
Answer: C
You might also like to view...
By adding internal costs to external costs, we determine the total
A) private cost. B) social cost. C) psychological cost. D) marginal cost.
An optimum currency union refers to the decision by a country to:
A) join a monetary union that best serves its self-interest. B) join a free trade area. C) dollarize its economy. D) eliminate tariffs.
You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Hassle's only variable input is the number of collection agents. The hourly wage for collection agents is $30.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Hire collection agents until the marginal revenue product is equal to the wage-which will occur when more than five agents are employed. B. Shut down immediately, as the firm is not able to cover all of its variable costs. C. Decrease the wage rate paid to collection agents so that their marginal revenue product will decrease. D. Hire five collection so as to maximize profits.
Refer to the diagram and list of assumptions. With women confined to occupation Z and men free to choose occupations, how will this affect the wages paid?
(1) the labor force is comprised of 9 million men and 9 million women workers; (2) the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3) men and women workers are homogeneous with respect to their labor-market capabilities; (4) women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.
A. Men and women will both be paid $5.
B. Men will be paid $5 and women $4.
C. Men will be paid $6.50 and women $3.
D. Women and men will both be paid $6.50.