Refer to Figure 5-6. Why is there a deadweight loss?
A) because the marginal private cost for each additional unit between Q1 and Q2 exceeds the marginal private benefit
B) because the marginal private benefit for each additional unit between Q1 and Q2 exceeds the marginal cost
C) because the marginal social cost for each additional unit between Q1 and Q2 exceeds the marginal social benefit
D) because the marginal social benefit for each additional unit between Q1 and Q2 exceeds the marginal cost
D
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Which of the following are examples of voluntary risks?
a. driving an automobile d. (a) and (b) only b. smoking cigarettes e. all of the above c. being struck by lightning
A head tax is an example of a proportional tax
Indicate whether the statement is true or false
When a country allows trade and becomes an importer of coal,
a. the losses of the domestic producers of coal exceed the gains of the domestic consumers of coal. b. the losses of the domestic consumers of coal exceed the gains of the domestic producers of coal. c. the gains of the domestic producers of coal exceed the losses of the domestic consumers of coal. d. the gains of the domestic consumers of coal exceed the losses of the domestic producers of coal.
When estimating a short-run production function of the form Q = AL3 + BL2, it is necessary to specify in the computer routine that
A. B > 0. B. A < 0. C. the intercept term is forced to equal zero. D. a and b E. all of the above