If the marginal social benefit of consuming a product exceeds the marginal social cost of producing it, social welfare is
a. increased by reducing output
b. decreased by expanding output
c. unchanged by expanding or reducing output
d. increased by expanding output
e. maximized
D
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The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes
A) foreign consumers to demand less of the good on which was levied a tariff. B) domestic demand for imports to decrease. C) domestic demand for imports to increase. D) foreign suppliers to produce less of the good on which was levied a tariff. E) no change in the foreign price of the good it imports.
All of the following will shift the AD curve to the right except a(n):
a. increase in consumer confidence. b. decrease in taxes. c. increase in government spending. d. increase in the MPC. e. increase in transfer payments.
Some economists believe that permanently lower marginal income tax rates __________ the incentive to work and thus shift the __________
A) increase; LRAS curve to the right B) increase; AD curve to the right C) increase; SRAS curve to the left D) decrease; LRAS curve to the right E) decrease; AD curve to the left
Based on your answer above(question 23), which of the following statements best characterizes demand for organic tomatoes.
A. Demand for organic tomatoes is inelastic. B. Demand for organic tomatoes is elastic. C. Organic tomatoes are a normal good. D. Organic tomatoes are an inferior good.