If firms have to account for external costs in production, then they will produce an output level that is ________ the efficient level.
A. above
B. at
C. either above or below
D. below
Answer: B
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The first major piece of antitrust legislation was the
a. Clayton Act. b. Obama Care Act. c. Sherman Act. d. Clinton Act.
A consumer who doesn't spend all of her income
a. would be at a point outside of her budget constraint. b. would be at a point inside her budget constraint. c. must not be consuming positive quantities of all goods. d. must be consuming at a point where her budget constraint touches one of the axes.
Which of the following is one of the reasons economists sometimes differ in their views on social policy?
A. Different models focus on different aspects of a problem. B. Economists' subjective value judgments tend to be very similar. C. Empirical evidence is so precise that there is little room for different interpretations. D. Most so-called economists have received no formal training.
Suppose the economy experiences a recessionary gap. Policymakers who believe that government is too big would favor which of the following policies to close the gap?
A) decreases in transfer payment B) decreases in income tax rates C) increases in government purchases D) increases in interest rates