If a negative externality exists in the market for dirt bikes and that market is perfectly competitive:
A. less than the efficient output of dirt bikes will be produced.
B. the price of dirt bikes equals the marginal social cost.
C. the price of dirt bikes is less than the marginal social cost.
D. the price of dirt bikes exceeds the marginal social cost.
Answer: C
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The preferences of the representative consumer over consumption and leisure are represented by use of a
A) production function. B) utility function. C) benefit function. D) preference function.
The consumer price index measures: a. the cost of all goods and services produced in the U.S. economy
b. the average change over time in the selling prices received by domestic producers for their output. c. the cost of a fixed market basket of consumer goods and services produced in the U.S. economy. d. the ratio of an economy's nominal GDP to its real GDP. e. the income distribution of an economy.
The law of supply implies that
A. Supply curves are downward-sloping to the right. B. Supply curves are flat. C. A change in a determinant of demand shifts the supply curve. D. Supply curves are upward-sloping to the right.
What is the difference between the short run and the long run?
Please provide the best answer for the statement.