The marginal social cost and private cost curves for a particular common property resource are upward sloping
What happens to the gap between teh actual quantity and the socially optimal quantity as the demand for the resource becomes more inelastic? A) Gap widens
B) Gap declines
C) Gap does not change
D) We do not have enough information to answer this question
B
You might also like to view...
The author of An Inquiry Into the Nature and Causes of the Wealth of Nations was
A) Duncan Bradstreet. B) Dow Jones. C) John Maynard Keynes. D) Karl Marx. E) Adam Smith.
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
Answer the following statement(s) true (T) or false (F)
1. Governments should avoid investing in education because it has little impact on productivity or economic growth. 2. Rapid population growth can negatively impact per capita output. 3. The law of diminishing marginal returns means that population growth can result in workers with insufficient capital. 4. A larger population means a larger labor force, greater production, and higher standards of living for the average worker. 5. With a higher population growth rate comes greater capital stock per worker.
Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 25%. If the Fed sells $5 million worth of government securities to the public, the change in the money supply will be
A. $100 million. B. $25 million. C. -$5 million. D. -$20 million.