If firms that practice second degree price discrimination use more block prices,
A) both consumer surplus and welfare will decrease.
B) both consumer surplus and welfare will increase.
C) consumer surplus will decrease, but welfare will increase.
D) consumer surplus will increase, but welfare will decrease.
C
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Economists generally prefer greater effort made to force internalization of externalities through taxes rather than using alternative approaches, such as establishing pollution standards
a. True b. False Indicate whether the statement is true or false
The current account balance is equal to
A. Trade balance + services balance - capital account balance. B. Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States. C .Trade balance + unilateral transfers. D. Trade balance + services balance + capital account balance.
Using historical statistics is likely to produce accurate estimates of demand curves since such studies have large amounts of data to draw on.
Answer the following statement true (T) or false (F)
Because producers do not bear the external cost of pollution
A) private production exceeds the economically efficient level. B) the economically efficient level of production is achieved. C) private production is below the economically efficient level. D) the market price is too high.