If a positive externality is to be taken full advantage of, the:
A. consumer of the good should receive a subsidy equal to the marginal cost imposed on third parties that results from production (or consumption) of the good.
B. producers' marginal costs should be decreased by an amount equal to the marginal cost imposed on third parties that results from production of the good.
C. consumer of the good should pay a tax equal to the marginal benefit to third parties that results from production (or consumption) of the good.
D. producers' marginal costs should be increased by an amount equal to the marginal benefit to third parties that results from production of the good.
Answer: A
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The competitive firm's long-run supply curve
a. is always perfectly horizontal. b. includes only that part of the long-run marginal cost curve that lies above long-run average cost. c. includes only that part of the long-run marginal cost curve that is sloping upwards. d. is identical to its long-run average cost curve.
The employment/population ratio is
A) more volatile than the participation rate. B) roughly constant over time. C) less volatile than the participation rate. D) smaller in 2012 than in 1970.
Why is there a deadweight loss associated with subsidy payments?
A) There is no deadweight loss from a subsidy. B) Quantity supplied is less than the equilibrium amount, so consumers and producers lose surplus value on those units that are no longer produced. C) Quantity supplied exceeds the equilibrium amount, and consumer willingness to pay for these additional units is smaller than the marginal cost of producing them. D) The subsidy payment does not distort quantities in the market, but the government cost exceeds consumer willingness to pay for the quantity demanded.
People who are not currently employed but say they want a job are counted as unemployed only if they: a. have previously held a job
b. are actively seeking employment. c. are discouraged workers. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.