A good that has external costs associated with its production will be
A) produced at the optimal level.
B) underproduced.
C) overproduced.
D) not produced.
C
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The minimum acceptable price for a product that producer Sam is willing to receive is $15. The price he could get for the product in the market is $18. How much is Sam's producer surplus?
A. $3 B. $33 C. $45 D. $270
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
Referring to Figure 19.2, the effect of an increase in U.S. interest rates is represented by a movement from point
A) a to b. B) c to b. C) a to d. D) d to c.
When a country exports something to the rest of the world, domestic consumers ________ because the greater the ________ in price and ________ in quantity bought, the greater is the consumers' loss
A) win; rise; increase B) lose, rise; decrease C) win; rise; decrease D) lose; rise; increase E) lose; fall; decrease