Refer to the above figures. A negative externality existed but has been corrected. Price and quantity will be
A) P1 and Q1.
B) P2 and Q2.
C) P3 and Q3.
D) P4 and Q4.
B
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"If the price of a ticket to Sea World exceeds the marginal cost of the ticket by $13, a producer surplus exists for Sea World." Is this statement true or false?
What will be an ideal response?
About 35,000 general aviation multiengine airplanes are licensed to operate in the United States. If an additional $1,000-per-year tax was levied on each plane to raise general revenue, economic thinking suggests the
a. annual revenue from this tax would be less than $35,000,000. b. annual revenue from this tax would be $35,000,000. c. annual revenue from this tax would be more than $35,000,000. d. number of airplanes would increase dramatically.
Which of the following statements is correct?
A. Monetarists believe that the economy is inherently unstable. B. Monetarists believe that policy activism is one of the principal causes of economic instability. C. Although monetarists are basically non-interventionist, they are in favor of activist monetary policy. D. Monetarists argue that changes in M1 affect GDP only through changes in interest rates.
Consider an economy with a labor force of 200 million people of which 180 million are employed while 20 million are unemployed. Each period, 45% of the unemployed population finds a job. If the economy is in a steady-state of unemployment, what percent of the employed population lose their job each period?
A. 15% B. 5% C. 25% D. 20% E. 10%