If there is an external cost from making paper, an unregulated competitive market produces
A) less than the efficient quantity.
B) the efficient quantity.
C) more than the efficient quantity.
D) a quantity that could be greater than, the same as, or less than the efficient amount.
C
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Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun's Law what does real GDP equal?
A) $8.32 trillion B) $8.00 trillion C) $8.16 trillion D) $7.68 trillion E) $7.84 trillion
Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. From the data above, the United States
a. has an absolute advantage over Great Britain in the production of textiles. b. has an absolute advantage over Great Britain in the production of wheat. c. has a comparative advantage in the production of textiles d. should export textiles to Great Britain.
A nation's monetary base changes when:
a. Funds cross our imaginary line. b. The federal government increases spending. c. Central banks swap currencies with each other. d. The central bank reduces the reserve requirement. e. None of the above.
In the above figure, a surplus exists in the gasoline market when the price is
A. $2 per gallon. B. $4 per gallon. C. $1 per gallon. D. below $2 per gallon.