Would the Waxman-Markey law achieve production efficiency?
What will be an ideal response?
Production efficiency requires producing on the PPF. Use a PPF showing the tradeoff between electricity and clean air. Production efficiency requires producing on the PPF so that gaining more clean air means giving up some electricity. Before the new law, production might have been on the PPF if the producers had used the most efficient technologies and taken account of the pollution they created. After the law is in place, production might be within the PPF if the law requires more production of energy from renewable sources than is production efficient.
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) Domestic output in country B will, after immigration:
A. Increase by $50M
B. Increase by $250M
C. Decrease by $50M
D. Decrease by $250M
A perfectly competitive firm will not operate where MC = MR but at MC = AC.
Answer the following statement true (T) or false (F)
The Federal Reserve may choose to monetize the debt in order to
a. reduce the burden of the national debt. b. shift the supply curve of money outward. c. shift the demand curve for money inward. d. reduce the volume of reserves in commercial banks.
The last $2,000 of Rolanda's wealth adds less to her utility than the previous $2,000 . Based on this information, Rolanda has
a. increasing marginal utility of wealth and is risk averse. b. increasing marginal utility of wealth and is not risk averse. c. decreasing marginal utility of wealth and is risk averse. d. decreasing marginal utility of wealth and is not risk averse.