If the production of a particular good causes a negative externality, would the equilibrium quantity in a competitive market be less than the efficient quantity or would it be greater than the efficient quantity?
What will be an ideal response?
The marginal social cost of a good with negative externalities is greater than its marginal private cost. Since firms consider the marginal private cost of a good, more of the good is produced than is socially desirable.
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If Happy Campers has a market share of 70 percent and Campers R Us has a market share of 5 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm and Campers R Us ________ be considered a dominant firm.
A) would; would B) would not; would C) would; would not D) would not; would not
Exchange rates are for currency what:
a. c, d and e. b. discounts are for sales. c. interest is for capital. d. prices are for apples. e. wages are for labor.
Between 1929 and 2009, the U.S. economy grew at an average annual rate of ________
a. 10.4 percent b. 7.9 percent c. 5.2 percent d. 3.3 percent
On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.
A. 5 B. -5 C. 10 D. 0