If a country is producing efficiently and is on the production possibilities frontier, the country can produce more of one good without producing less of the other good
Indicate whether the statement is true or false
FALSE
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Refer to Negative Externality. According to a Pigovian analysis of this externality, when a tax of $5 per unit is imposed on the firms in this industry, the external costs created by the firms' production will equal
The following questions refer to the accompanying diagram, which shows the effects of a negative externality created by an industry's production. The equilibrium quantity in the absence of any attempt to internalize the externality is QE, and the optimal quantity according to a Pigovian analysis is QO.
a. area C + D + E + G + H.
b. area C + D + G + H.
c. area C + G.
d. zero.
Sweep accounts
A) have made reserve requirements nonbinding for many banks. B) sweep funds out of deposit accounts into long-term securities. C) enable banks to avoid paying interest to corporate customers. D) reduce banks' assets.
Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market for ground meat?
A. Market clearing price will fall, and equilibrium quantity will rise. B. Market clearing price will fall, and equilibrium quantity will fall. C. Market clearing price will rise, and equilibrium quantity will fall. D. Market clearing price will rise, and equilibrium quantity will rise.
Monopolistically competitive firms in long-run equilibrium produce at less than
A. minimum ATC. B. the optimal scale. C. the MR = MC output. D. All of the above are correct.