In Figure 28.1, emission fees will
A. Shift the marginal cost of production to the right.
B. Raise marginal revenues.
C. Increase the marginal cost of production.
D. Reduce external benefits.
Answer: C
You might also like to view...
An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals one. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?
A) 1 B) 2 C) 1.8 D) 0.5
If government expenditures exceed tax receipts then, other things being constant
A. a surplus exists. B. a balanced budget exists. C. the public debt will rise. D. the deficit becomes smaller.
According to the monetarists, which of the following is true?
A. Instability in the money supply is the primary cause of economic instability. B. A reduction in the money supply will cause consumers to increase spending. C. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. D. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.
The figure above shows Lauren's demand curve for Barbie dolls and the market price for Barbie dolls. Using the area of the consumer surplus triangle, Lauren's total consumer surplus from purchasing 3 dolls is
A) $5.50. B) $10.00. C) $22.50. D) $45.00. E) 3 dolls.