What happens if we internalize a negative externality?
a) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.
b) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced.
c) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced.
d) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced.
Answer: b) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced.
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Which of the following happens if the Fed buys bonds from a private bank?
A) The Fed's total liabilities remain unaffected. B) The private bank's total assets remain unchanged. C) The private bank's composition of assets remain unchanged. D) The Fed's total assets decrease.
If the quantity of money supplied is greater than the quantity of money demanded, then the
A) price of financial assets falls. B) money supply decreases. C) nominal interest rate rises. D) nominal interest rate falls. E) price level falls.
Markets in which the Herfindahl-Hirschman index ________ are considered highly concentrated
A) is 1,000 B) is zero C) is between 1,000 and 1,800 D) is above 1,800
Refer to the table below. If at the current advertising level, A = $9,800, B = $15,200, and C = $8,000, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
B) The firm should decrease its advertising on the television and increase its advertising in newspapers.
C) The firm should increase its advertising on the television and decrease its advertising in newspapers.
D) The firm should decrease its advertising on the radio and increase its advertising on television.