Which of the following statements is true?
A. Competitive markets result in the socially efficient price and quantity when externalities exist.
B. Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.
C. Economists prefer command-and-control regulations to incentive-based pollution programs.
D. An effluent tax is a tax imposed on rich people.
Answer: B
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The unemployment rate
A) rises during times of rapid economic growth and falls during times of slow economic growth. B) rises during recessions and falls during booms. C) rises during booms and falls during recessions. D) tends to remain the same in booms and recessions.
Which of the following is true? a. Real GDP equals nominal GDP divided by the current price level index, times one hundred
b. In periods of inflation, real GDP growth will tend to be greater than nominal GDP growth. c. In a country with a growing population, real GDP could be falling at the same time that real GDP per capita was rising. d. Marrying one's housekeeper would leave reported GDP unchanged.
Perfect Competition is an industry in which there is only one supplier of a product that has no close substitutes.
Answer the following statement true (T) or false (F)
If a firm has a U-shaped long-run average cost curve,
a. its fixed cost rises as output rises. b. it must have increasing returns to scale at low levels of production and decreasing returns to scale at high levels of production. c. it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production. d. the firm can maximize its output by operating at the point of minimum long-run average cost.