An external cost on supply can be measured graphically as the
A. Horizontal distance between the market supply curve and the social supply curve.
B. Horizontal distance between the market demand curve and the social demand curve.
C. Vertical distance between the market demand curve and the social demand curve.
D. Vertical distance between the market supply curve and the social supply curve.
Answer: D
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What property of the von-Neumann Morgenstern utility function is related to risk aversion?
a. Its upward slope b. Its downward slope c. Its convexity d. Its concavity
Total surplus:
A. is producer and consumer surplus combined.
B. is producer surplus minus consumer surplus.
C. is consumer surplus minus producer surplus.
D. is the total amount spent on a good in a market.
The classical theory of inflation illustrates the relationship among:
A. money supply, output, and the overall level of prices. B. spending, saving, and the overall price level. C. savings, investment, and the interest rate. D. money supply, savings, and investment.
Other things equal, an increase in the general price level causes the money demand function to shift to the left
a. True b. False Indicate whether the statement is true or false