In a perfectly competitive equilibrium with production and trade, which of the following results occur(s)?
A) Pareto-efficiency is obtained.
B) The First Welfare Theorem is satisfied.
C) There is efficiency in production.
D) All of the above.
D
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A decrease in the interest rate will cause a(n)
A. decrease in the amount of money held as an asset. B. increase in the amount of money held as an asset. C. decrease in the transactions demand for money. D. increase in the transactions demand for money.
Which of the following is not included in the U.S. balance of payments?
a. U.S. corporate gifts to families harmed by a hurricane. b. U.S. government military gifts to foreign governments. c. U.S. aid to Indonesian tsunami victims. d. All of the above are included in the balance of payments.
In this graph for the marginal costs and benefits of pollution controls, investing more capital and labor to reduce pollution is efficient at ______.
a. Q1
b. Q2
c. Q*
d. both Q1 and Q2
If firms have to spend money on creating and protecting their monopoly power, they're going to buy:
A. no monopoly power. B. more monopoly power than if it were free. C. less monopoly power than if it were free. D. the same monopoly power as if it were free.