In a situation in which property rights are not well-defined and social costs exceed private costs, government can use all of the following to induce producers to bring private costs into alignment with social costs EXCEPT
A) taxing production.
B) coercive limits on production.
C) subsidization of production.
D) regulation of production.
Answer: C
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Which of the following unemployment rates can be negative?
A) the official unemployment rate reported by the Bureau of Labor Statistics B) the natural unemployment rate C) the cyclical unemployment rate D) the seasonal unemployment rate
Because many resource prices are set by long-term contracts, in the short run
a. costs will increase by more than product prices when demand increases. b. costs will decrease when the demand for products increases. c. costs will increase by less than product prices when demand increases. d. costs will decrease by more than product prices when demand decreases.
Which of the following examples accurately reflects a perfectly competitive market?
a. Boris knew it would be easy to enter the apple market but tough to leave it. b. Cynthia found entering the tomato market to be so difficult that she quit trying. c. Juanita easily got her farm out of the corn market when her profits fell. d. Nathan had to satisfy several legal requirements to exit the rye market.
An increase in the price of a good will lead to an increase in the quantity supplied.
a. true b. false