Refer to A Negative Externality Problem. According to Pigou, the socially optimal level of production is
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation.
a. 0 units.
b. 30 units.
c. 40 units.
d. 45 units.
c. 40 units.
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Matt's real wage in 2014 is $26.80. If the price level is 104, what is Matt's nominal wage?
A) $30.80 B) $27.87 C) $26.80 D) $25.77
Which of the following factors can change continually in such a way as to bring about continued increases in aggregate demand?
A) autonomous consumption B) autonomous investment C) government spending D) the money supply E) all of the above
Fiscal policy formation causes a delay in implementation even though a recession can usually be recognized within a few weeks after it begins.
Answer the following statement true (T) or false (F)
If income increases, the budget line:
A. rotates counterclockwise. B. shifts to the right. C. rotates clockwise. D. shifts to the left.