The table above gives information on the marginal perceived private benefit and marginal social benefit associated with vaccination against varicella (chicken pox)
If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations, the government could provide a subsidy of A) $4 per vaccination.
B) $3 per vaccination.
C) $2 per vaccination
D) $1 per vaccination.
C
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In bringing an economy out of a recession, a government will often resort to ________ fiscal policies, which often results in budget deficits
A) conservative B) innovative C) contractionary D) expansionary
In the short run, a firm should shut down when
A) P < AVC. B) P > MC. C) MR > MC. D) MR = ATC.
An individual labor-demand curve represents:
A. the decisions of all firms around how many hours to work at each alternative wage. B. the decisions of all workers around how many hours to work at each alternative wage. C. a worker's decisions around how many hours to work at each alternative wage. D. a firm's decisions around how many hours to hire at each alternative wage.
In Figure 5.8, if the supply curve moves from S3 to S4,
A. the firm will go from making an economic profit to a normal profit. B. the firm will go from making a normal profit to a loss that is big enough to make it want to shutdown. C. the firm will make a smaller economic profit than they used to. D. the firm will go from making a normal profit to a loss but one that is not big enough to make it want to shutdown.