Refer to Scenario 16.2 below to answer the question(s) that follow. SCENARIO 16.2: The marginal benefit for a particular food is described by MB = 60 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 3q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 5q.Refer to Scenario 16.2. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $20
B. 0 units of food; $0
C. 15 units of food; $45
D. 10 units of food; $50
Answer: C
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In ________, health care spending per person based on income per person is significantly higher than the average for most other countries
A) the United States B) Austria C) Norway D) Canada
Privatization requires
a. transparency b. the training of competent managers c. the installation of adequate facilities for transportation d. All of the answers are correct e. None of the answers is correct
Labor demand is more elastic the greater the elasticity of substitution between labor and capital because
A. a firm's technology is slow to change. B. firms always have the option of substituting capital for labor. C. the firm's output price falls when the firm produces more output. D. a firm is less willing to pay higher labor costs if it is easy for the firm to substitute capital for labor. E. workers supply more labor when their wage increases.
Which of the following is a normative economic statement?
a. The Federal budget surplus rose by 10 billion dollars b. A fall in the unemployment rate was forecast for next month c. The Federal funds rate was reduced by half a percentage point d. A trade deficit of 20 billion dollars will harm the economy