The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. At Kaffenia's efficient quantity of chocolate
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) the sum of consumer surplus and producer surplus is zero.
D) the sum of consumer surplus and producer surplus is maximized.
D
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In an increasing-cost industry, the long-run market supply curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. nonexistent
The major problem with direct controls as an environmental protection measure has been
A. insufficient enforcement. B. special interest legislation. C. illegal dumping. D. legislation that lack substantial penalties.
Taxes on alcohol and tobacco are often referred to as “______ taxes.”
a. flat b. vertical c. sin d. progressive
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.