Flu shots provide a positive externality. Suppose that the market for vaccinations is perfectly competitive. Without government intervention in the vaccination market, which of the following statements is correct?
a. At the current output level, the marginal social benefit exceeds the marginal private benefit.
b. The current output level is inefficiently low.
c. A per-shot subsidy could turn an inefficient situation into an efficient one.
d. All of the above are correct.
d
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Which of the following statements regarding poverty in the United States is correct?
a. There are as many poor African Americans as there are poor whites. b. The incidence of poverty is lower among females than among males. c. The incidence of poverty is higher among African Americans than among whites. d. Most of the poor people in the United States are elderly (over age 65).
If Switzerland chooses to engage in trade, it
a. will only benefit if it trades with countries that produce goods Switzerland cannot produce. b. cannot benefit if it trades with less developed countries. c. should first attempt to produce the good itself. d. can benefit by trading with any other country.
A government good or service includes
A. bridges. B. parks. C. national defense. D. all of these answer options are correct.
Figure 34-7
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In Figure 34-7, AB represents the production possibilities of Pestoland and CD that of Pastaland. In this graph, Pestoland has a comparative advantage in
A. pasta because OA/OB < OC/OD. B. pesto because OA/OB < OC/OD. C. pasta because OA/OB > OC/OD. D. pesto because OA/OB > OC/OD.