Consider a setting in which there is a positive externality, but no negative externality. The market outcome is __________________; government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________
A) inefficient; efficient; MEB
B) inefficient; efficient; MEC
C) efficient; inefficient; MPC
D) inefficient; efficient; MPB
E) inefficient; efficient; MSB
A
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Elsie is a perfectly competitive dairy farmer. The market price of milk was $2.40 but just fell to $2.20 a gallon. Elsie
A) can sell as much milk as she wants at $2.20 a gallon. B) will have to charge some customers $2.40 a gallon to stay in business. C) will produce the same amount of milk at both prices. D) can sell more at the lower price because the quantity demanded is higher at lower prices. E) will be able to charge her initial customers $2.40 a gallon.
Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership
A) less than 1 percent B) less than 5 percent C) less than 10 percent D) none of the above
As pollution emissions increase, the added cost of one more unit of emissions goes down.
Answer the following statement true (T) or false (F)
Some economists believe that because the government ______________ discouraged workers as unemployed, the unemployment rate is biased ________________
a. counts; upward b. counts; downward c. does not count; upward d. does not count; downward