Which of the following statements about private and social costs is TRUE in the presence of negative externalities created by pollution?
A) Competitive market produces excessive pollution.
B) The optimal amount of pollution is zero.
C) Social costs exclude externalities.
D) Social producer surplus exceeds private producer surplus.
A
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Other things equal, if Mexico devotes more resources to train its population than Spain,
A) Mexico will be able to eliminate scarcity faster than Spain. B) Mexico will grow faster than Spain. C) Mexico will be able to eliminate opportunity cost faster than Spain. D) Mexico will have more current consumption than Spain. E) Spain will grow faster than Mexico.
Monopolistically competitive firms earn zero economic profit in the long run as do perfectly competitive firms. Does this mean that total surplus is maximized in a monopolistically competitive market?
What will be an ideal response?
Distinguish between a foreign bond and a Eurobond
What will be an ideal response?
(Consider This) Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information, we can conclude that the:
A. law of supply has been violated. B. law of demand has been violated. C. demand for coffee beans has increased. D. supply of coffee beans has increased.