A perfectly competitive steel mill that produces large amounts of a pollution (a negative externality) will, from a social point of view, produce:
a. too little steel.
b. the socially optimal quantity of steel.
c. too much steel.
d. too much steel only if it installs pollution control equipment.
c
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In 1990, U.S. nominal GDP was $5,744 billion and the GDP chain price index is 93.6 . Real GDP is:
a. $6,137 billion. b. $5,376 billion. c. $6,000 billion. d. $6,376 billion.
The labor-force participation rate of a country is 20%. The number of employed and unemployed people are 50 million and 20 million, respectively. The adult population of the country is _____
a. 70 million b. 120 million c. 450 million d. 350 million
Horizontal and vertical equity are the two primary measures of efficiency of a tax system
a. True b. False Indicate whether the statement is true or false
How do you know that firms benefit society?
A. Entrepreneurs start businesses. B. Customers voluntarily pay for their products. C. Firms pay taxes and employ people. D. Firms earn profits and produce goods.