Suppose that flower gardens create a positive externality equal to $1 per plant. What is the relationship between the equilibrium quantity and the socially optimal quantity of plants grown?
a. They are equal.
b. The equilibrium quantity is greater than the socially optimal quantity.
c. The equilibrium quantity is less than the socially optimal quantity.
d. There is not enough information to answer the question.
c
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In the late 2000s, which of the following was the primary source of external financing for small to medium-size firms?
A) mortgages B) bank loans other than mortgages C) trade credit D) other loans
The above figure shows the isoquants for producing steel. Increasing returns to scale are
A) present when producing less than 10,000 tons. B) present when producing less than 20,000 tons. C) present when producing less than 30,000 tons. D) never present.
What are the three reasons why the aggregate demand curve slopes downward? Give an example of each
Liberalism is founded on a premise that behind a "veil of ignorance,"
a. justice cannot be agreed upon. b. everyone's income should be equal. c. everyone would agree to "just" rules to reallocate income. d. society should maximize the sum of individual utilities.