In a perfectly competitive market, a(n) ________ occurs because ________
A) efficient outcome; total surplus is maximized
B) deadweight loss; firms minimize average minimum cost
C) efficient outcome; the fair rules condition is met
D) deadweight loss; firms must be price takers
E) deadweight loss; total surplus is minimized
A
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Economists typically suggest three choices that allow a polluter to decide how to absorb most, or perhaps all, of the social costs of its actions, which are
A) continuing to overproduce the good, lowering the price of the good, or cutting output. B) reducing the pollution-causing activity, changing production techniques, or paying a price to pollute. C) installing pollution abatement equipment, paying to pollute, or just ignoring the issue. D) paying a pollution tax, continuing to use existing production techniques, or continuing the polluting behavior without regard to the social implications.
Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?
a. precipitation b. regulation c. circulation d. unemployment
The US Navy determines that the navigation system on its submarines, which use low-frequency radio waves, is reducing the population of humpback whales. The is an example of
A. marginal thinking. B. comparative advantage. C. the market mechanism. D. the Phillips curve. E. an externality.
Changes in government purchases affect spending:
A. autonomously. B. indirectly. C. directly. D. only when there is an expansionary gap.