In the figure above, if a pollution tax is imposed that is equal to the marginal external cost of pollution, then at the equilibrium, marginal social cost would ________ marginal benefit, and the quantity of chemical produced would be ________
A) exceed; above the efficient quantity
B) exceed; below the efficient quantity
C) be below; above the efficient quantity
D) be below; below the efficient quantity
E) equal; efficient
E
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Use the following figure to answer the next question.
If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be ________.
A. F and A, respectively B. G and B, respectively C. E and B, respectively D. F and C, respectively
Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?
A) a fall in income if used cars are an inferior good B) an increase in the wage rate paid to used car salespeople C) neither of the above because the question suggests a violation of the "law of demand" D) neither of the above because the question suggests a violation of the "law of supply"
Refer to Figure 8.2. If the firm expects $80 to be the long-run price, how many units of output will it plan to produce in the long run?
A) 22 B) 34 C) 38 D) 50 E) 64
The U.S. goal for price stability:
A. Is an inflation rate of 3 to 6 percent. B. Is an inflation rate of zero or less. C. Changes each year based on economic performance. D. Is an inflation rate of fewer than 3 percent.