A subsidy for pollution not produced can induce producers to pollute at the efficient level.
A. True
B. False
C. Uncertain
A. True
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According to classical theory, full employment in the labor market occurs
A) only when actual expenditures are greater than desired expenditures. B) only when the economy has just experienced a demand shock. C) whenever aggregate demand is less than aggregate supply. D) at a wage rate at which quantity demanded equals quantity supplied.
According to the graph shown, if this economy were an autarky, consumers would get area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A in consumer surplus.
B. ABC in consumer surplus.
C. ABCD in consumer surplus.
D. ABCDEFG in consumer surplus.
Answer the following statement true (T) or false (F)
1) The demand for a resource depends on its productivity and the market value of the product it is producing. 2) If two resources are complementary, a decrease in the price of one will reduce the demand for the other. 3) Other things equal, the less competitive the market in which a firm sells its product, the less elastic will be its resource demand curve. 4) If the substitution effect outweighs the output effect, an increase in the price of a substitute resource will increase the demand for labor.
Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, society may move to PPF2 as a result of
