A paper plant produces water pollution during the production process. If the government forces the plant to internalize the negative externality, then the
a. supply curve for paper would shift to the right.
b. supply curve for paper would shift to the left.
c. demand curve for paper would shift to the right.
d. demand curve for paper would shift to the left.
b
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Which statement is true?
A. William Julius Wilson and Charles Murray are basically in agreement about the causes of the formation of a permanent underclass. B. The permanent underclass has more white members than black members. C. There is very little evidence to show that there is actually a permanent underclass. D. There are more poor whites than poor blacks in the United States.
Demand is elastic if the price elasticity of demand is
a. less than 1. b. equal to 1. c. equal to 0. d. greater than 1.
An increase in the marginal propensity to consume will:
a) Lead to the consumption function becoming steeper b) Shift the consumption function upwards c) Shift the consumption function downwards d) Shift the savings function upwards
If a monopolist is producing an output at a point where ATC > P > MC, then it is
A. breaking even. B. covering total costs but not total variable costs. C. earning negative economic profits. D. earning positive economic profits.