The social cost of production is:
A. the private cost of production plus the external cost generated by production.
B. the external cost generated by production.
C. the private cost of production that is greater than the benefit of production.
D. the external cost of production that is greater than the benefit of production.
Answer: A
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The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The loanable funds market is in equilibrium when the real interest rate is
A) 7 percent B) 4 percent. C) 3 percent D) 6 percent. E) 5 percent.
A quantity less than the equilibrium quantity in a competitive market is inefficient because
A) the marginal benefit of another unit is greater than its marginal cost. B) too much of the good is being produced. C) the marginal cost of another unit is greater than its marginal benefit. D) the marginal benefit of another unit is not equal to zero. E) the marginal benefit is not maximized.
Incentive-based regulations:
a. set an environmental goal, but are flexible on how to achieve the goal. b. obtain more efficiency gains is obtainable from CAC regulations. c. effluent taxes are an example of incentive-based regulations. d. all of the above are true. e. none of the above are true.
The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $10 for 10,000 widgets. At that level of output, the firm's average total costs equal
a. $10 b. $15 c. $20 d. $25