Which of the following statements is false?
A) In the case of a negative externality, the market equilibrium is inefficient.
B) In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved.
C) In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result.
D) In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.
D
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The purely competitive employer of resource A will maximize the profits from A by equating the
A. price of A with the MRC of A. B. marginal productivity of A with the price of A. C. price of A with the MRP of A. D. marginal productivity of A with the MRC of A.
Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for
A) sweatshirts will increase that is, the demand curve will shift rightward. B) tee-shirts will increase that is, the demand curve will shift rightward. C) sweatshirts will decrease that is, the demand curve will shift leftward. D) tee-shirts will decrease that is, the demand curve will shift leftward.
Gunnar can work as a campus security officer at a guaranteed salary of $20,000 per year or as a real estate agent
If Gunnar works as a real estate agent, there is a 50 percent chance that he will earn $10,000 per year and a 50 percent chance that he will earn $30,000 per year. Based on the table above, Gunnar's expected utility if he works as a real estate agent is A) 170. B) 85. C) 20. D) 90.
Persistent current account deficits for the United States have
A) increased government budget deficits. B) decreased investment in new plant and equipment. C) slowed economic growth. D) None of the above are correct.