The pollution tax in Figure 9.10:
A. reduces equilibrium output.
B. reduces pollution associated with the production of the good.
C. raises equilibrium price.
D. All of these
Answer: D
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A straight-line production possibilities curve has
A) an increasing opportunity cost between the two goods. B) a decreasing opportunity cost between the two goods. C) a constant opportunity cost between the two goods. D) no opportunity cost between the two goods.
Repurchase agreements are usually used by banks that:
A. cannot obtain financing from any other source. B. need cash for a very short period of time. C. have negative net worth. D. have a need for long-term financing.
Suppose a budget line is drawn between pizza, on the horizontal axis, and tacos, on the vertical axis. How does a change in the price of a pizza affect the budget line?
What will be an ideal response?
When there are diseconomies of scale in production:
a. long-run average total cost declines as output expands. b. long-run average total cost increases as output expands. c. average fixed cost increases as output expands d. marginal cost decreases as output expands.