In Figure 29.1, the area that represents the producer surplus under monopoly is
A. FPmonopolyBE.
B. FPPCC.
C. PPCAC.
D. PmonopolyAB.
Answer: A
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A) better; higher price and greater quantity sold B) better; higher price and smaller quantity sold C) better; lower price and greater quantity sold D) worse; lower price and smaller quantity sold E) worse; higher price and greater quantity sold
A negative externality exists and government wants to impose a per-unit tax in order to bring about the socially optimal output. To accomplish its objective, government must set the tax equal to marginal
A. private cost. B. social benefit. C. external cost. D. social cost. E. private benefit.
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A) the balance of payments. B) the merchandise trade balance. C) the current account. D) the financial account.
E-cash cards are considered a major portion of the modern money supply
a. True b. False Indicate whether the statement is true or false