When a negative externality is present in a market, when a quota is imposed, it is:
A. efficient, because the market consumes the efficient level.
B. not efficient, because individuals' net benefits from the amount set by the quota are different.
C. efficient, because the net benefit of everyone at the amount set by the quota is equal.
D. not efficient, because the marginal cost outweighs the marginal benefit for too many consumers at the amount set by the quota.
B. not efficient, because individuals' net benefits from the amount set by the quota are different.
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Entrepreneurs contribute to increased average labor productivity in each of the following ways except by:
A. developing new products. B. introducing new production methods. C. assigning workers to jobs. D. implementing new technological processes.
The figure above shows that as a result of the tariff, producer surplus in the United States
A) decreases by $105 million per year. B) increases by $55 million per year. C) decreases by $30 million per year. D) decreases by $20 million per year. E) remains unchanged.
The 2009 fiscal stimulus package was passed ________
A) to prevent the real interest rate from rising B) to shift the IS curve to the left C) to raise aggregate output at any interest rate D) all of the above E) none of the above
Assets that the IMF created to be used by countries to settle international payment obligations are called
A) capital intervention accounts. B) foreign currency reserves. C) gold reserves. D) special drawing rights.