If the economy were producing at point E and moved to point B the opportunity cost in terms of lost production of outboard motors would be
A. 16 units of outboard motors.
B. 14 units of outboard motors.
C. 12 units of outboard motors.
D. 10 units of outboard motors.
C. 12 units of outboard motors.
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Suppose a tax equal to the value of the marginal external cost at the optimal output is imposed on a pollution generating good. All of the following will result from the tax except
A) an increase in demand for the good. B) a decrease in the equilibrium quantity produced and consumed. C) an increase in the equilibrium market price. D) a decrease in market supply of the good.
When many banks choose to hold excess reserves, ______________ monetary policy may not work well.
a. tight b. free c. expansionary d. contractionary
Who tends to benefit from the sugar price supports?
a. users of sugar in other products b. individual users of sugar c. producers of other agricultural products d. producers of sugar e. All of the above are correct.
A demand curve reflects each of the following except the
a. willingness to pay of all buyers in the market. b. value each buyer in the market places on the good. c. highest price buyers are willing to pay for each quantity. d. ability of buyers to obtain the quantity they desire.