Monopolists reduce producer surplus.
Answer the following statement true (T) or false (F)
False
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The productivity slowdown experience in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries
Indicate whether the statement is true or false
When Tobin's q is greater than one, ________
A) a unit of a firm's stock (equity) is worth more than a unit of the firm's capital B) a new unit of capital has more value than a new unit of stock (equity) C) installed capital is worth less than new capital D) a unit of capital that a firm owns has more value than a unit it might buy
Suppose that a specific tax of $3 is imposed on producers of bread. The bread market supply is Qs = 10 + 0.5P and the bread market demand is Qd = 100-P. What is the change in the equilibrium quantity of bread induced by the tax incidence?
A) Equilibrium quantity decreased by three units. B) Equilibrium quantity increased by two units. C) Equilibrium quantity decreased by one unit. D) Equilibrium quantity increased by one unit.
The optimal public policy to correct for negative pecuniary externalities is _____
a. corrective taxation and compensation b. subsidization c. corrective taxation without compensation d. nothing