In comparison to the case of a perfectly competitive home market, the welfare effects of a tariff under a home monopoly are _______, and the deadweight loss for the home monopoly is ________.
a. the same; the same
b. higher; lower
c. lower; higher
d. lower; lower
Ans: a. the same; the same
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Answer the following statement(s) true (T) or false (F)
1. Comparative risk analysis is aimed at minimizing the absolute level of a risk. 2. Risk-benefit analysis and benefit-cost analysis are examples of risk management strategies. 3. President Regan’s Executive Order 12291 called for the explicit use of risk-benefit analysis. 4. Economists support the use of allocative efficiency as a criterion to identify the “acceptable” level of risk. 5. In the United States, all environmental laws setenvironmental risk at a level where the MSB equals the MSC.
In a market with an external cost, government action
A) cannot decrease the amount of the deadweight loss from the external cost. B) can sometimes help to achieve an efficient outcome. C) cannot alter firms' cost curves. D) Both answers A and C are correct. E) Both answers B and C are correct.
If the cyclical deficit shrank by $60 billion while the structural deficit increased by $35 billion, the total deficit
A. Grew by $95 billion. B. Fell by $60 billion. C. Grew by $25 billion. D. Fell by $25 billion.
Other things constant, which of the following would you expect to increase the output growth rate of a country?
What will be an ideal response?