A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.Refer to the above figures. A positive externality exists that has not been corrected. Price and quantity will be
A. P1 and Q1.
B. P2 and Q2.
C. P3 and Q3.
D. P4 and Q4.
Answer: C
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Around the year ______, growth in the world output per head accelerated sharply.
A. 1350 B. 1500 C. 1650 D. 1800
The face value of money or income is called its ________ value.
A. real B. marginal C. nominal D. external
"My brother is better at cooking, better at cleaning, and better at fixing the car than I am." Relative to me, my brother has
A. an absolute advantage in cooking, cleaning, and car repair. B. more income than me. C. a comparative advantage in cooking, cleaning, and car repair. D. more intelligence than me.
Refer to Figure 26.3 for a monopolistically competitive firm. The output level that is allocatively efficient for this firm is
A. Q1. B. Q2. C. Q3. D. Zero. The firm should shut down because it is not earning an economic profit.