Because of the free rider problem
a. private solutions to externality problems are often needed
b. side payments are needed in order to achieve Pareto improvements
c. governmental solutions to externality problems are often needed
d. side payments are needed in order to solve externality problems
e. private solutions to externality problems are common
C
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Which of the following factors of production is not variable in the long run?
a. the size of the firm's plant. b. property taxes on the assets of the firm. c. highly trained labor. d. All factors of production are variable in the long run.
The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more than 1,100 trousers during a month. This implies:
a. the production level is inefficient. b. that if the production of trousers is reduced, that of shirts will also decline. c. that a reallocation of resources may make previously unachievable outcomes achievable. d. the production level is efficient.
Refer to the diagram, in which Qf is the full-employment output. The shift of the aggregate demand curve from AD3 to AD2 is consistent with
A. an expansionary fiscal policy. B. a major recession. C. a contractionary fiscal policy. D. demand-pull inflation.
The Levines sold their vacation home for $188,000. If they made a profit of 10 percent, what was the original cost of their property?
A) $169, 200 B) $179,000 C) $179,200 D) $170,900