An external cost on supply can be measured graphically as the
A. Vertical distance between the market demand curve and the social demand curve.
B. Vertical distance between the market supply curve and the social supply curve.
C. Horizontal distance between the market supply curve and the social supply curve.
D. Horizontal distance between the market demand curve and the social demand curve.
Answer: B
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ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus?
a. The price of a dozen eggs increases from 40 cents to 55 cents. b. The price of a dozen eggs increases from 55 cents to 70 cents. c. The price of a dozen eggs increases from 55 cents to 75 cents. d. All of these price increases would cause both companies to experience a loss in producer surplus.
If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's excess reserves will:
A. increase by $100,000. B. increase by less than $100,000. C. not change. D. decrease by less than $100,000.
Which of the following was one of Marx's predictions?
A. Competition among capitalists would benefit workers. B. Firms would become larger and larger. C. Capitalism in its pure form was benevolent. D. Capitalism would evolve into feudalism.
Which of the following accurately describes an effect of Hurricane Harvey on GDP?
A) GDP would decrease reflecting the costs of cleanup. B) GDP would increase reflecting the costs of cleanup. C) GDP would increase reflecting the decrease in production that occurred during the storm and the productive capacity lost in the storm. D) GDP would increase well-being.