Which of the following is true?
A) MSC = MC + Marginal external cost
B) MC = Marginal external cost - MSC
C) MC = Marginal external benefit + MSC
D) MSC = Marginal external cost + marginal external benefit
E) MSC = Marginal external cost - marginal external benefit
A
You might also like to view...
The amount of time it takes Congress to debate the size of a tax cut is known as the
A) recognition time lag. B) action time lag. C) effect time lag. D) Ricardian-equivalence time lag.
A hypothesis states that religious teachings, family ties, and/or social norms are the root cause of economic prosperity. According to this hypothesis:
A) culture is a proximate cause of prosperity. B) geography is a fundamental cause of prosperity. C) institutions is a fundamental cause of prosperity. D) culture is a fundamental cause of prosperity.
If a tax is placed on suppliers of a good, then the incidence of the tax
A) falls more on the sellers if demand is elastic. B) falls more on the sellers if demand is inelastic. C) is usually split equally between the buyers and the sellers. D) usually falls more on the sellers than the buyers. E) usually falls more on the buyers than the sellers.
The exchange efficiency condition holds:
A. if every pair of individuals has inverse marginal rates of substitution for every pair of goods. B. if every pair of individuals shares the same marginal rate of substitution for every pair of goods. C. if every pair of individuals consumes the same quantities of every pair of goods. D. if every pair of individuals have the same level of utility.