If error in setting the policy is possible,
A) a standard generates smaller welfare losses than a fee when the MSC and MCA are both relatively flat.
B) a standard generates smaller welfare losses than a fee when the MSC and MCA are both relatively steep.
C) a standard generates smaller welfare losses than a fee when the MSC is relatively steep and the MCA is relatively flat.
D) a standard generates smaller welfare losses than a fee when the MSC is relatively flat and the MCA is relatively steep.
E) errors in standards and fees have equal welfare losses, so long as the errors are the same in percentage terms.
C
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What will be an ideal response?
In June, buyers of titanium expect that the price of titanium will fall in July. What happens in the titanium market in June, holding everything else constant?
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A) demand for a factor is downward sloping. B) supply of a factor is upward sloping. C) supply and demand intersect. D) supply of a factor is horizontal.
A. decrease the quantity of X demanded by more than 4 percent. B. decrease the quantity of X demanded by less than 4 percent. C. increase the quantity of X demanded by more than 4 percent. D. increase the quantity of X demanded by less than 4
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