A Pigouvian tax corrects for
A. market congestion.
B. market losses.
C. inefficient sales.
D. low market prices.
D. low market prices.
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In an open economy, desired domestic lending
A) must equal desired domestic borrowing. B) must equal desired domestic borrowing plus the amount of international lending. C) is always greater than desired domestic borrowing. D) is always less than desired domestic borrowing.
The condition, MRSC,C' = 1 + r, describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.
AZT is a drug that inhibits the reproduction of the AIDS virus, thus preventing the full development of the disease. The drug, which is sold in an unregulated market, is very expensive, and many AIDS patients who cannot afford it die from the disease. This case provides ammunition to critics of the market system on the basis of its
A. fairness. B. externalities. C. cost disease in services. D. inefficiency.
"The long-run average cost curve is derived from adding all short-run average cost curves together." Do you agree or disagree? Explain
What will be an ideal response?