Suppose a certain good conveys either an external cost or an external benefit. If the private cost of the last unit of the good that was produced is equal to the private value of that unit, then the sum of producer and consumer surplus is maximized
a. True
b. False
Indicate whether the statement is true or false
False
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When a country allows trade and becomes an importer of a good,
a. domestic producers become better off, and domestic consumers become worse off. b. domestic producers become worse off, and domestic consumers become better off. c. domestic consumers become better off, but the effect on the well-being of domestic producers is ambiguous. d. domestic producers become worse off, but the effect on the well-being of domestic consumers is ambiguous.
When a firm is operating at an efficient scale,
a. average variable cost is minimized. b. average fixed cost is minimized. c. average total cost is minimized. d. marginal cost is minimized.
An increase in the demand for corn is more than offset by an increase in its supply. As a result, the equilibrium price will ________ and the equilibrium quantity will ________.
A. decrease, increase B. increase, increase C. decrease, decrease D. increase, decrease
According to the Reverend Thomas Malthus
A. population tends to grow until checked by a shortage of food. B. population tends to grow until checked by a shortage of oxygen. C. population tends to grow unless checked by religious or moral restraints. D. economics is a dismal science.