When a firm imposes an external social cost, the government should impose a tax exactly equal to the marginal social cost to ensure that the efficient level of output will be produced.
Answer the following statement true (T) or false (F)
False
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The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?
What will be an ideal response?
A quota:
A. is a tax on imports. B. is a tax on exports. C. directly limits the total quantity of a good that can be imported. D. directly limits the total quantity of a good that can be exported.
A rise in demand for restaurant meals is likely to cause which of the following in the long run?
a. economic losses for each restaurant b. a lower price for each restaurant meal c. fewer restaurants in the industry d. more restaurants in the industry e. economic profit for restaurants
The relatively low inflation experienced in the United States in the 1990s is attributable to
a. slow growth of U.S. productivity during the 1990s. b. slow growth of the quantity of money in the U.S. in the 1990s. c. low levels of government spending in the U.S. in the 1980s and 1990s. d. the eight-year presidency of William Jefferson Clinton during the 1990s.