In order to correct the problems associated with external costs,
A. standards must be established that make it illegal to pollute.
B. the government must take over production of industries that are responsible for most of the pollution.
C. the signals given to the economy must change so that decision-makers will take into account all the costs of their actions.
D. the prices of all goods must be raised so people will consume less of the world's resources.
Answer: C
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A price ceiling in the market for gasoline that is below the equilibrium price will lead to
A) the quantity demanded of gasoline exceeding the quantity supplied. B) an increase in the demand for gasoline. C) a decrease in the supply of gasoline. D) the quantity supplied of gasoline exceeding the quantity demanded. E) no change in the market since the price ceiling is below the equilibrium price.
If price elasticity is 3.25 then
A) for every one percent change in price, there will be a 3.25 percent change in quantity demanded. B) for every one percent change in price, there will be a 3.25 percent change in demand. C) for every one percent change in price, there will be a 32.5 percent change in quantity demanded. D) for every one percent change in price, there will be a .0325 percent change in quantity demanded.
Why is prediction in social sciences like economics more difficult than in physical sciences?
If the elasticity number (E) is less than 1, a price increase will cause total revenue to fall.
Answer the following statement true (T) or false (F)