The marginal social cost curve ________ when production involves negative externalities
A) is parallel to the horizontal axis
B) is parallel to the demand curve
C) lies above the supply curve
D) lies to the right of the supply curve
C
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Which of the following is an outcome of prolonged unemployment?
a. An improvement in labor skills b. An increase in the inflation rate c. A rise in potential GDP d. A fall in potential GDP e. An increase in the size of the labor force
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
a. horizontal at the full-employment level of real GDP. b. positively sloped at the full-employment level of real GDP. c. vertical at the full-employment level of real GDP. d. backward bending at the full-employment level of real GDP.
Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:
A. Joshua faces a more inelastic demand curve. B. Avital faces a more elastic demand curve. C. Joshua faces a more elastic demand curve. D. Avital faces a less inelastic demand curve.
The Heckscher-Ohlin Theorem predicts
A) who benefits and who loses from trade. B) which factors are abundant. C) the income distribution effects of trade. D) which goods will be exported.