Consider a situation in which a factory emits high levels of air pollution and the factory is not liable for the damages its pollution causes. According to the Coase theorem, government action is ________ to achieve an ________ amount of pollution
A) necessary; equitable
B) not necessary; equitable
C) necessary; efficient
D) not necessary; efficient.
D
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In a competitive market, economic profits will
A. Cause new firms to leave the market. B. Cause existing firms to expand production. C. Potentially last a long time. D. Not be possible, even in the short run.
Fran runs a doughnut shop in a tiny 3-person town. The table below shows the quantity demand by the three townspeople at various prices.Price PerDoughnutQuantity Demandedby AlQuantity Demandedby BettyQuantity Demandedby Carol10 cents104625 cents92535 cents71550 cents504When the price of a doughnut is 25 cents, what is the market demand for doughnuts?
A. 13 doughnuts B. 16 doughnuts C. 20 doughnuts D. 9 doughnuts
The law of diminishing marginal utility says that
a. as more of a good is consumed, total utility diminishes causing marginal utility to diminish as well b. as more of a good is consumed, total utility increases causing marginal utility to diminish c. with reference to consumption, more is better than less until a point is reached after which less is better than more d. with reference to consumption, less is better than more until a point is reached after which more is better than less e. we always value the "one before the last one" more
When the economy is in an inflationary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________
A) shortage; rise; SRAS; leftward B) shortage; fall; SRAS; leftward C) surplus; rise; AD; rightward D) shortage; fall; AD; rightward E) surplus; fall; SRAS; rightward