If the marginal private cost of running a car is $0.30 a mile and the marginal external cost is $0.10, what is the marginal social cost?
A) $0.20
B) $3.00
C) $0.03
D) $0.40
E) None of the above answers is correct.
D
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Which statement is false?
A. Suburbanization was the migration of tens of millions of middle-class Americans—nearly all of them white—from the cities to the suburbs. B. The people who moved to the suburbs were replaced in the cities by millions of poor people, the large majority of whom were black and Hispanic. C. The inner cities today are socially isolated from the rest of the country. D. None of these statements are false.
Special interest group X receives a 1/150th slice of the economic pie. Its net benefits from an economic growth policy are $7,000, which are the same as its net benefits from a transfer policy. What is the change in the size of the economic pie (Real GDP) that is required to bring about this result?
A. $1,050,000 B. $46.67 C. $150,000 D. $2,500,000 E. none of the above
Money eliminates the need for:
A. specialization of labor. B. financial Intermediaries. C. government regulation. D. a search for a double coincidence of wants.
A country with an overvalued currency
A. will have a balance of payments deficit. B. will suffer losses of foreign reserves. C. must intervene in the foreign-exchange market to buy its own currency. D. All of the above are correct.