The marginal social cost curve lies below the marginal private cost curve, with the vertical difference between the two curves representing the marginal external cost
Indicate whether the statement is true or false
false
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The notion of opportunity cost allows the measurement of tradeoffs
Indicate whether the statement is true or false
If the demand and supply curves for a commodity shift to the right and the shift in demand is greater than the shift in supply, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and quantity. B) a higher price and quantity. C) the same price and quantity. D) a higher price and a lower quantity.
Conrad and Meyer (1958) found evidence to support the claim that the annual rates of return to slave agriculture were
(a) high enough to attract investment funds away from other alternatives in the cotton South. (b) high enough to benefit the entire Southern economy through the profits generated and the backward and forward links to other businesses. (c) relatively low in the new frontier, thus encouraging the new cotton producing areas of the South to move away from the slave system. (d) low enough that the people in the North could purchase the slaves and free them at minimal cost.
Recessionary gaps usually lead to
a. structural unemployment. b. cyclical unemployment. c. seasonal unemployment. d. frictional unemployment.