When a market experiences a positive externality,
a. the demand curve does not reflect the value to society of the good.
b. too much of the good is being produced.
c. the government can internalize the externality by imposing a tax on the product.
d. the private value is greater than the social value.
a
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Producer surplus definitely exists when the
A) price exceeds marginal benefit. B) price exceeds marginal cost. C) marginal cost exceeds the price. D) marginal benefit exceeds the price. E) marginal benefit exceeds the marginal cost.
In Figure 1.4, a shift of the production possibilities curve from PP1 to PP2 could be caused by
A. Tougher pollution controls for the producers of televisions and smartphones. B. Implementation of training programs that improve the skills of workers. C. An increase in the unemployment rate. D. A flu epidemic that makes many workers sick.
Figure 10.2 depicts a firm's marginal revenue product curve. If the output price is $5, what is the marginal product of the third worker?
A. four units of output B. five units of output C. six units of output D. seven units of output
Most Mexican workers can increase their wages if they migrate to the United States, a demand-pull factor for migration
Indicate whether the statement is true or false