In this graph for negative externalities in production, the efficient equilibrium point is at ______.
a. point A
b. point B
c. P1 and Q1
d. P2 and Q2
d. P2 and Q2
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A tax is efficient if
A) it is based on profits earned and not on wages. B) it imposes a small excess burden relative to the revenue it raises. C) it encourages saving and investment. D) individuals with the lowest incomes pay proportionately lower taxes than individuals with the highest incomes.
If the Federal Reserve increases the money supply, ceteris paribus, the:
a. rate of interest decreases. b. rate of interest increases. c. rate of interest is unaffected. d. Fed sells bonds.
Which of the following changes will occur to the market for movie tickets when the price of the tickets rises
A. The demand curve will shift out, causing the price to increase and the quantity to decreases. B. The demand curve will shift out, causing the price to increase and the quantity to increases. C. The demand curve will shift in, causing the price to decrease and the quantity to increases. D. The demand curve will not shift, since the price of the tickets changed. Instead, given the law of demand, the quantity-demanded of the tickets will be reduced.
A line that rises at a 45 degree angle has a slope of
A. 0.45. B. 1. C. 45. D. 1/45.