A marginal external cost of a product is equal to
A) what the producer has to pay to hire resources to produce another unit.
B) the cost someone other than the producer incurs when another unit is produced.
C) the cost the producer incurs to produce another unit.
D) what the consumer must pay when he or she buys the good or service.
E) None of these answers describes a marginal external cost.
B
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The above figure shows the U.S. market for wheat. With international trade, consumer surplus is equal to ________
A) area A + area B + area C B) area E + area F C) area B + area C + area D D) area A + area B + area C + area D E) area A
The social interest theory of regulation assumes that
A) regulations favor voters over producers. B) regulations promote the attainment of competitive output. C) public officials seek to keep their jobs. D) public officials favor consumers over producers.
In long-run equilibrium, the perfectly competitive firm produces
A. where P = MC = AC. B. at the lowest point on its long-run average cost curve. C. where its long-run average cost curve is tangent to its horizontal demand curve. D. All of the responses are correct.
Which of the following would cause the demand for loanable funds to increase?
a) A reduction in consumer confidence that causes people to save more. b) A new investment tax credit for businesses to expand. c) A major sporting event in town that causes people to withdrawl money from their bank accounts. d) A reduction in government spending.