If the government intervenes and corrects the externality in the situation described below, we would expect:
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.
A. The output of the paper mills to increase
B. The price of paper from the mills to decrease
C. Production of the hydroelectric power plants to decrease
D. Production in the paper mills to decrease
D. Production in the paper mills to decrease
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The filing status of a person who is legally married yet separated as a result of a messy impending divorce is likely to be
A. single. B. married filing jointly. C. single head of household. D. married filing separately.
There is no longer much debate among economists concerning the severity of and the solution to the problems in using the CPI to measure the cost of living
a. True b. False Indicate whether the statement is true or false
In a competitive market, the actions of any single buyer or seller will
a. discourage entry by competitors. b. influence the profits of other firms in the market. c. have a negligible impact on the market price. d. Both a and b are correct.
If the price of a good increases from $20 to $25 and the quantity demanded declines from 15 to 10 units of the good, the price elasticity of demand is 5
a. True b. False