An improvement in technology would cause each of the isoquants in a firm's isoquant map to shift out away from the origin
Indicate whether the statement is true or false
FALSE
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Suppose that large-scale pork production has the potential to create ground water pollution. Why might this type of pollution be considered an externality?
a. The groundwater pollution reduces the cost of large-scale pork production. b. The economic impact of a large-scale pork production facility is localized in a small geographic area. c. The pollution has the potential for creating a health risk for water users in the region surrounding the pork production facility. d. Consumers will not reap the benefits of lower production cost from large-scale pork production.
The sum of the unemployment rate and the employment rate always equals 100 percent
Indicate whether the statement is true or false
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
As shown in the graph, when a government imposes a quota, the outcome differs from that of a tariff being imposed in that area:
A. G represents quota rents instead of tax revenues. B. F and H are deadweight loss instead of transferred surplus. C. FGH is deadweight loss instead of tax revenues. D. E represents tax revenues instead of transferred surplus.
One risk of targeting inflation at zero is that ______.
a. it may damage the credibility of the central bank b. deflation may be prevented c. investment spending may reach unsustainable levels d. interest rates may fall too low