Is the $821 billion that the government would spend on incentive programs and compensation for higher energy prices part of the opportunity cost of producing electricity?
What will be an ideal response?
The incentive programs change what electricity providers buy in order to produce electricity with lower emissions. The goods and services forgone are the opportunity cost of these programs. Compensation for higher energy prices is a transfer payment from taxpayers to consumers. Nothing is forgone and so it is not an opportunity cost.
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If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units, the slope of the function is
A. 5 B. ?.5. C. ?2. D. ?72.
A strategy called "limit pricing" sets the price
A) below the competitive level. B) at the monopoly level. C) at the lowest level that inflicts a loss on the entrant. D) at the highest level that inflicts a loss on the entrant.
When the price level_______, the inflation rate ______
A. rises rapidly; increases B. rises rapidly; is high C. falls; is zero D. rises slowly; falls
If firms were required to pay the full social costs of the production of goods, including both private and external costs, other things being equal, there would probably be: a. an increase in production
b. a decrease in production. c. a greater misallocation of resources. d. a decrease in the market price of the product.