The greater the magnitude of the external costs of production,
a. The larger is the deadweight loss from overproduction
b. The greater would be the optimal pollution tax.
c. The further the private market solution ignoring those costs would deviate from the socially efficient level of output.
d. All of the above are true.
c
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Recent evidence supports the belief that new information is incorporated into the value of most stocks within
a. one trading day. b. one week. c. one month. d. about 30 seconds.
Define economic income. Give at least three examples
What will be an ideal response?
Under autarky, consumer surplus is represented by the area
A) above the supply curve and below the equilibrium price. B) above the demand curve and below the supply curve. C) below the demand curve and above the equilibrium price. D) above the supply curve and below the demand curve.
Which of the following statements is correct?
a. If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly. b. Although the logic of self-interest decreases a duopoly's price below the monopoly price, it does not push the duopolists to reach the competitive price. c. Although the logic of self-interest increases a duopoly's level of output above the monopoly level, it does not push the duopolists to reach the competitive level. d. All of the above are correct.