An incentive to cheat and overproduce (prod quota)
What will be an ideal response?
Because price > MSC, there's a larger profit from one more unit produced
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According to the Application, what advantages occur as a result of granting ownership of a dwelling to its occupant?
A) increased incentives for property maintenance B) potential increase in the market value of the property C) increased investment in housing repairs D) all of the above
Which of the following is likely to shift the labor supply curve to the left, assuming all else equal?
A) A rise in the wage rate B) A social change that discourages women to participate in the labor force C) A fall in the wage rate D) Decrease in the maximum amount of unemployment benefits
In a free market economy,
A. problems with externalities can never be solved. B. public goods will be efficiently provided by the private sector. C. detrimental externalities are rare. D. externalities can be solved by policy makers using market methods.
Refer to the diagram. Assume that G and T 2 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget surplus.
B. actual budget deficit.
C. cyclically adjusted budget deficit.
D. actual budget surplus.