When the government requires a firm to pay an emission charge in proportion to its pollution,
A. Neither marginal costs nor average total costs are affected.
B. Marginal costs rise, but average total costs do not.
C. Both average total costs and marginal costs rise.
D. Average total costs rise, but marginal costs do not.
Answer: C
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A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from
A) producers to consumers. B) consumers to producers. C) government to consumers. D) producers to government.
In economics, the term "equity" means
A) economic benefits are distributed fairly. B) everyone has an equal standard of living. C) the hardest working individuals consume all they want. D) only elected officials have high standards of living.
Increasing prices tend to decrease interest rates and increase investment spending
a. True b. False Indicate whether the statement is true or false
Division of labor
A. makes economic goods possible. B. increases the amount of capital in the economy. C. leads to an increase in the amount of output in the economy. D. is not possible for service goods.