When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the
a. firm's cost of producing electricity will be higher than the community's true opportunity cost.
b. firm will tend to produce too little electricity from the viewpoint of economic efficiency.
c. community generally receives an external benefit from the production of electricity.
d. firm's cost of producing electricity will be lower than the community's true opportunity cost.
D
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________ is defined as the increase in domestic assets held by foreigners minus the increase in foreign assets held domestically
A) Net transfers B) The current account C) The financial account D) Net exports
Do food stamps affect the slope of the budget constraint of their recipients or rather shift the budget constraint? Explain
What will be an ideal response?
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, producer surplus is
A) $0. B) $16. C) $52. D) $68.
Suppose the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that
A) the United States has no comparative advantage B) Germany has a comparative advantage in butter. C) the United States has a comparative advantage in butter. D) Germany has a comparative advantage in widgets. E) Germany has lost its comparative advantage.