If a pollution tax imposed on a firm is smaller than the external cost:
A. the externality is completely internalized.
B. the social production cost increases by the amount of the pollution tax.
C. the pollution tax transfers the full cost borne by people outside the firm back to the firm itself.
D. from society's viewpoint, the firm is producing too much.
Answer: D
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Answer the following statements true (T) or false (F)
1. An increase in the number of inexperienced workers in the labor force is likely to increase the unemployment rate relative to the level of output. 2. The total labor force includes all persons in the non institutional population who are either working or seeking work. 3. Much of the unemployment associated with recessions is cyclical in nature. 4. Frictional unemployment is caused primarily by automation. 5. Underemployment includes employed workers not performing at full capacity.
Your savings account balance would be counted in which measure of money?
A. M1 B. M2 C. Hard money D. It would be counted in both M1 and M2
If European economies experience strong economic growth, U.S. net exports will
a. increase and AD will shift rightward. b. increase and AD will shift leftward. c. decrease and AD will shift leftward. d. decrease and AD will shift rightward.
The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50 . Each dog be sold for a price of $65 . The Three Amigo's total costs are
a. $7,500. b. $25,000. c. $32,500. d. $67,500.