If the government wants to increase economic efficiency, it should:
A. never subsidize goods.
B. subsidize goods that entail positive externalities.
C. tax goods that entail positive externalities.
D. never tax goods.
Answer: B
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Use the following graph to answer the next question.
Which point is not on the perfectly competitive firm's short-run supply curve?
A. E B. F C. G D. H
Average fixed cost is defined as:
A. total variable cost divided by quantity. B. quantity divided by total variable cost. C. the change in total variable cost divided by the change in quantity. D. total fixed cost divided by quantity.
A person who refuses an offer of employment in order to keep looking for a better job is counted by the BLS as
A) a discouraged worker. B) a shirker. C) eligible for unemployment compensation. D) not in the labor force. E) unemployed.
A steady state is
A) a temporary equilibrium. B) a Pareto Optimum. C) a long-run equilibrium. D) an economy with ongoing fluctuations.