Tax creates a deadweight loss
What will be an ideal response?
MSB > MSC, shrinks producer and consumer surplus
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A defining characteristic of an oligopoly is:
A. barriers to entry prevent newcomers to such an industry. B. firms in the industry know they are competing with a few large firms with market power. C. easy entry and exit prevent long-run profits from being possible. D. all firms sell a standardized product.
The precautionary principle is most likely to be applied when some impacts
a. Involve option values b. Are irreversible c. Are converted to present values d. Are estimated using the avoided cost approach e. Involve indirect use values
The Board of Governors of the Federal Reserve System has how many governors?
A. 7 B. 5 C. 12 D. 50
Answer the following questions true (T) or false (F)
1. Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services. 2. A perfectly competitive firm in long-run equilibrium produces output at the lowest possible average total cost.