If the social costs of refining oil are greater than the private costs of oil refining, then
A) the external costs of oil refining are greater than the social costs of oil refining.
B) users of products that use refined oil are paying too much for the products.
C) there is too much oil refining.
D) the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.
C
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What is the Laffer curve and why is it unlikely that the United States is on the "wrong" side of it?
What will be an ideal response?
When output is below its full-employment level, the short-run aggregate supply will shift down and to the right because
A) the expected price level will be below the actual price level. B) workers' wages will decline. C) prices of nonlabor inputs will rise. D) workers' wages will rise.
Government policies that encourage savings
A) reduce interest rates. B) increase interest rates. C) have no effect on interest rates. D) lower the net present value of all investments.
Happy Cows is a dairy farm that is currently earning $5,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm; however, the managerial diseconomies from adding the second farm cause Happy Cows current farm's economic profit to fall to $3,000. It is economically sound for Happy Cows to add the second farm if ________.
A) the second farm's economic profit is at least $1,500 B) the second farm's economic profit is at least $1,750 C) the second farm's economic profit is less than $2,000 D) the second farm's economic profit exceeds $2,000