A firm producing a smoke externality is producing
a. more than the socially optimal quantity of output.
b. less than the socially optimal quantity of output.
c. exactly the socially optimal quantity of output.
d. There is insufficient information to answer.
a
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In the case of a small country, consumer surplus
A) decreases less with a tariff than with an equivalent quota. B) decreases less with a quota than with an equivalent tariff. C) is not changed by tariffs or quotas. D) decreases the same with tariffs and equivalent quotas. E) increases more with quotas.
A venture capital fund buys the __________ of a new company and hopes to profit from __________
A) debt; repayment of the debt at maturity B) debt; interest payments on that debt C) equity; dividends from the equity D) equity; eventual sale of that equity
The Student t distribution is
A) the distribution of the sum of m squared independent standard normal random variables. B) the distribution of a random variable with a chi-squared distribution with m degrees of freedom, divided by m. C) always well approximated by the standard normal distribution. D) the distribution of the ratio of a standard normal random variable, divided by the square root of an independently distributed chi-squared random variable with m degrees of freedom divided by m.
The price index that measures the cost of a basket of goods and services bought by firms is called the
a. industrial price index. b. producer price index. c. core price index. d. GDP deflator.