The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive, what government policy might move the market closer to efficiency?
A) The government could subsidize the production of steel.
B) The government could tax the production of steel.
C) The government could issue vouchers to steel consumers.
D) None of the above answers is correct.
B
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If in Switzerland in January, 2009 the CPI was 187.4 and in January, 2010 it was 191.1, then the inflation rate in 2010 was
A) 1.9 percent. B) 3.7 percent. C) -1.9 percent. D) unknown without the base period index number. E) unknown without the real prices.
The factor distribution of income:
A. shows how much income people get from labor compared to land and capital. B. refers to the pattern of income that people derive from different factors of production. C. hasn't changed substantially in the last century in the United States. D. All of these statements are true.
If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase b. decrease c. increase if the income effect dominates the substitution effect d. increase if the substitution effect dominates the income effect e. increase if the substitution effect equals the income effect
With increased specialization in the economy, principal-agent problems become
a. more numerous b. less numerous c. more severe, but there are fewer of them d. less severe, but there are more of them e. easier to solve