In the case of negative externalities, _____
a. the market equilibrium output is greater than the socially optimal output
b. the market equilibrium output is lesser than the socially optimal output
c. the social cost curve lies below the private cost curve
d. the market is allocatively efficient at market equilibrium
a
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According to the graph, what quantity of domestic lumber will be supplied after a tariff of $0.50 per board foot is imposed?
A.1,100,000 board feet
B. 900,000 board feet
C. 700,000 board feet
D. 600,000 board feet
Refer to Figure 13-7. Which of the following is the area that represents the profit or loss experienced by the firm?
A) a loss represented by the rectangle P2uvP1 B) a loss represented by the rectangle P2uwP0 C) an accounting profit equal to P1vwP0 D) a loss represented by the rectangle P1vwP0
Suppose the mean earnings of two groups differ. Which of the following would be the logical conclusion?
a. The group with the lowest earnings must be the victim of employment discrimination. b. The group with the lowest earnings must be less productive. c. The group with the highest earnings is more highly motivated and materialistic. d. Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.
With specialization
A. there are greater gains in material well being. B. society is more productive while individuals are less productive. C. there is more emphasis on self-reliance. D. opportunity costs tend to be constant.