If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal.
B) produce less of the good than is socially optimal.
C) produce the socially optimal quantity of that good.
D) produce zero output.
A
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Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) expansionary monetary policy C) contractionary monetary policy D) contractionary fiscal policy
We can conclude that there has been inflation since the base year if the GDP price index in the current year is _____
a. 10 b. equal to zero c. 20 d. greater than 100 e. negative
Suppose that the price elasticity of supply is one and the quantity supplied increases by 5%. Other things being equal, the percentage change in the price should be:
A. a 0.5% increase in the price. B. a 5% increase in the price. C. a 0.2% increase in the price. D. a 2% increase in the price.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.