If production of a good creates beneficial externalities, a perfectly competitive market will produce
a. less output than would maximize profit.
b. more output than would maximize profit.
c. less output than is socially efficient.
d. more output than is socially efficient.
c
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Assuming all else equal, if the demand for a firm's product falls, ________
A) the firm moves to a lower point along its labor demand curve B) the firm moves to a higher point along its labor demand curve C) the firm's labor demand curve shifts to the left D) the firm's labor demand curve shifts to the right
Are some monopolies created by government legislation that gives a firm the unique right to produce a good or service?
What will be an ideal response?
The United States imports cars from Japan. If the United States imposes a tariff on cars imported from Japan
A) U.S. consumers lose and Japanese producers gain. B) U.S. tariff revenue equals the loss of U.S. consumer surplus. C) U.S. consumers lose and U.S. producers gain. D) U.S. car manufacturers gain revenue equal to the revenue lost by Japanese car manufacturers.
A naïve implication of the DD-AA framework is that either fiscal or monetary policy can lead to full employment. Discuss why this view is naïve
What will be an ideal response?