This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
Picking up the 20th bag of litter would:
A. be socially efficient, but would not be consistent with the actions of self-interested individuals.
B. be socially efficient.
C. create deadweight loss.
D. increase total economic surplus.
Answer: C
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The lower the amount of unemployment benefits citizens receive, the
A) higher the wage people must be offered before they accept a job. B) the longer people search for jobs. C) higher the opportunity cost of job search. D) the higher the natural unemployment rate. E) lower the opportunity cost of job search.
If your taxable income rises from $27,000 to $47,000, and the taxes you pay rise from $15,000 to $20,000, your marginal tax rate is
A. 15 percent. B. 25 percent. C. 35 percent. D. 45 percent.
When U.S. official reserves ________, the official settlements account balance becomes negative and when U.S. official reserves ________, the official settlements account balance becomes positive
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease E) More information is needed about the balances on the current account and the capital account in order to answer this question.
Suppose you are offered a gamble in which you win $1,000 half the time but lose $1,000 half the time. If you are risk averter will you take the gamble?
What will be an ideal response?