If a detrimental externality is being produced in the course of producing a good, then
A. P > MSC.
B. MSC < MPC.
C. incidental costs are negative.
D. output is inefficiently large.
Answer: D
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Discretionary fiscal policy is defined as fiscal policy
A) left to the discretion of military authorities. B) initiated by an act of Congress. C) initiated by a Presidential proclamation. D) triggered by the state of the economy. E) with multiplier effects.
If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.
Answer the following statement true (T) or false (F)
Is there any common characteristic shared by government-inhibited goods and government-sponsored goods? Explain briefly
What will be an ideal response?
A key to creating effective policy to fight poverty is to understand:
A. the correlation between education and income. B. the correlation between income and geographic location. C. why people are poor. D. the unintended consequences of reductions in the incentive to work.