When Pigouvian subsidy is imposed on a market with a positive externality, total surplus:
A. increases more than the increase in consumer surplus.
B. decreases less than the increase in consumer surplus.
C. decreases more than the decrease to producer surplus.
D. increases less than the decrease to producer surplus.
Answer: A
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The marginal propensity to import (mpi), where M = imports, is defined as
A) M * Y. B) ?M/?Y. C) M - Y. D) ?M * ?Y.
Cost-push inflation can be started by
A) a decrease in the money wage rate. B) an increase in the money prices of raw materials. C) an increase in the quantity of money. D) an increase in government expenditure on goods and services. E) a decrease in government expenditure on goods and services.
If the MRP of labor in a firm is $67, and the MLC equals $56, what would you advise the firm to do?
a. Stay at its current output level. b. Hire additional workers. c. Raise prices. d. Reduce employment. e. Reduce the wage rate.
Price discrimination will occur whenever a firm faces a downward-sloping demand curve
a. True b. False