External costs are modeled by creating a new social cost curve that is
A. higher than the original supply curve.
B. lower than the original demand curve.
C. higher than the original demand curve.
D. lower than the original supply curve.
Answer: A
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If country A is importing good x from country B where x is produced in a perfectly competitive industry (composed of identical firms), then, in the long run, country A will suffer the entire deadweight loss from any tariff it might impose on imports of x from country B.
Answer the following statement true (T) or false (F)
The additional cost to a producer of hiring an additional unit of labor is called the marginal cost
Indicate whether the statement is true or false
Which of the following is a single statistic that summarizes a rating agency's view of the issuer's likely ability to make the required payments on its bonds?
A) grade B) bond rating C) speculation D) yield
Theoretically, when a currency depreciates one can predict that
a. the price level will rise and real GDP will rise. b. the price level will fall and real GDP will fall. c. real GDP will rise, but price change is not predictable. d. the price level will rise, but real GDP change is not predictable.