If a producer were forced to absorb the cost of a spillover from the production of a good, this would likely cause the supply curve for the good to
A) shift out.
B) shift to the left.
C) shift to the right.
D) None of the above are correct.
Answer: B
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Analyze the following statement, and show what would happen in the long run if such advice were followed by the Fed: "The increase in the stock market has increased people's wealth
As a result, their consumption has increased, increasing aggregate demand and output. So the Fed needs to increase the money supply, since with higher income, people's demand for real money balances will be higher."
When considering choice architecture, a nudge:
A. allows participants to choose among only choices that are good for them. B. can sometimes accomplish public policy goals in a less expensive way than traditional methods. C. presents choices that are similar to participants' ideal choices, but are slightly better than them. D. is a deliberate push by choice architect to get all people to behave a certain way.
The position of the supply curve in the market for garbage removal
a. is irrelevant since the cost is fixed. b. depends on the marginal cost of garbage removal. c. depends on the demand for garbage removal services. d. is unaffected by taxes levied per household amount of garbage.
Why and how do economic problem arise?
What will be an ideal response?