A positive externality exists when
A. marginal social costs are less than marginal private costs.
B. marginal social costs are greater than marginal private costs.
C. marginal social benefits are less than marginal private benefits.
D. marginal social benefits are greater than marginal private benefits.
E. a and d
Answer: D
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The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. The allocatively efficient quantity of pizza is ________ pizzas per day
A) 70 B) 10 C) more than 70 D) 40
Explain Thomas Hobbes' view that favors consumption as the best tax
What will be an ideal response?
Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then:
A) the price elasticity of supply will increase. B) the price elasticity of supply will increase if the slope of the supply curve is greater than one. C) the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive. D) the price elasticity of supply will be constant. E) none of the above
Compared to the short run, the long-run market supply curve is
a. less elastic b. equally elastic c. more elastic d. always negatively sloped e. None of the answers is correct.