When the production of a good has an external cost, the
A) marginal social cost curve lies below the marginal private cost curve.
B) marginal social benefit curve lies above the marginal private benefit curve.
C) equilibrium quantity in an unregulated, competitive market has a marginal social cost greater than the marginal social benefit.
D) equilibrium quantity in an unregulated, competitive market has a marginal social cost less than the marginal social benefit.
C
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One type of demander in the loanable funds market
A) lends funds to purchase financial capital. B) lends funds to purchase physical capital. C) wants physical capital in order to purchase financial capital. D) wants funds to purchase financial capital. E) wants funds to purchase physical capital.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. area (B + C) gets transferred from consumer to producer.
B. area (B + C) gets transferred from producer to consumer.
C. area B gets transferred from consumer to producer.
D. area B gets transferred from producer to consumer.
Managers of profit centers usually have
a. A lot of discretion over decisions b. Most of their decisions overseen by corporate executives c. No discretion over decisions d. Given excessively high bonuses
A tax in an efficient market:
A. increases efficiency. B. decreases total surplus. C. maximizes total surplus. D. often fails to generate revenue.