Assume the production of a good gives rise to external benefits. The government may increase efficiency by
A) subsidizing consumption of the good.
B) requiring all producers of the good to be licensed.
C) taxing production of the good.
D) imposing taxes on the good.
A
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While the slope of the perfectly inelastic supply curve ________, the slope of the perfectly elastic supply curve ________
A) is zero, approaches infinity B) approaches infinity, is zero C) is zero, is zero D) approaches infinity, approaches infinity
Examples of incentive pay include
a. allowing employees a certain number of personal days b. royalties to textbook authors c. cleaning the worksite with weekly janitorial service d. offering a certain number of sick days
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Of the labeled points, only ________ are efficient.
A. W, X, Y, Z, V, and T B. W, X, Y, Z, and V C. T and U D. X, Y, and Z
One year into the crisis, Argentina's interest payments were roughly equal to
A) 100 percent of exports. B) 60 percent of exports. C) 45 percent of exports. D) 10 percent of exports.