At a competitive market equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities, i. consumer surplus is minimized. ii. marginal cost equals marginal benefit. iii. resources are efficiently used
iv. producer surplus is minimized. A) ii and iii
B) i and ii
C) i and iv
D) i, ii, iii, and iv
E) ii only
A
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The federal government has the power to investigate and to try to block
a. only voluntary mergers between firms. b. only hostile takeovers. c. only friendly takeovers. d. any combining of the ownership of previously independent firms that increases concentration.
In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million. At the new equilibrium, how much will saving have increased?
A. $8 million B. $16 million C. $20 million D. $80 million E. $100 million
A fair coin is flipped. You will be paid $1 when it is heads and penalized $1 otherwise. What is the variance of the payoffs?
A. 0.25. B. 0. C. 1. D. 0.50.
If the production of a product results in significant external costs, an appropriate government policy might be to
A) subsidize the production of the good. B) tax producers and thus shift the supply curve to the left. C) tax consumers' incomes and thus shift the demand curve to the left. D) subsidize consumers since the good is being under-consumed.