An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Refer to A Negative Externality Problem. Suppose there is no attempt to internalize the externality. Pigovian analysis indicates that the externality creates a deadweight loss equal to
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. MCS = 10 + Q b. MCS = Q c. MCS = 20 + Q d. MCS = 10 + 10Q
Which of the following is a base on which taxes are levied in the United States?
A. property B. sales C. income D. all of the above
Use the following circular flow diagram to answer the question below.
If box A represents businesses or firms, B the resource market, and C households, and if flow (7) represents goods and services, then flow (6) would represent
A. consumption expenditures. B. goods and services. C. money income. D. resources.
Offshoring refers to the the process in which: a. a firm hires laborers from a foreign market
b. a firm purchases service from another firm. c. a firm purchases service from another firm in another country. d. workers of a particular country seek employment in a firm of a foreign country. e. the government of a country works toward providing social security and other rights to migrant workers.