Which of the following statements is INCORRECT?
a. The MSC includes the market-level marginal abatement cost and the government’s cost of enforcement
b. If the MSC function is known, total social costs at a given abatement level are found as an area under the MSC
c. If the TSC function is known, the marginal social cost of a given abatement level is equal to an area under the TSC
d. The MSC of environmental quality is captured by the supply of environmental quality
c. If the TSC function is known, the marginal social cost of a given abatement level is equal to an area under the TSC
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Labor unions cause unemployment because the union contract wage is set
A) below the market wage, causing a shortage of labor. B) above the market wage, causing a surplus of labor. C) above the market wage, causing a shortage of labor. D) below the market wage, causing a surplus of labor.
A long-term loan that is given to a firm is known as a
A) share of stock. B) bond. C) dividend. D) random walk.
If a firm can double inputs and, thereby, more than double output over the range of output the market demands, it is said to be experiencing
a. decreasing minimum efficient scale b. increasing returns to scale c. constant returns to scale d. decreasing returns to scale e. increasing long run average cost
Fungibility is the property of an entity whose individual units:
A. are interchangeable. B. are less valuable when used together. C. are nearly impossible to identify. D. each serve a unique purpose.