The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What amount of tax per ton of paper is necessary to produce the efficient quantity of paper?
A) $60
B) zero
C) $40
D) $100
A
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An outward shift in the entire production possibilities frontier
A. represents economic decline. B. means that previous levels of production are now unobtainable. C. means that the only way the economy can increase the production of one good is by producing less of an alternative good. D. represents economic growth.
Firms in monopolistic competition resemble monopolies in that both types of firms
a. earn positive economic profits in the long run. b. charge prices higher than their marginal costs. c. possess barriers to entry that keep potential rivals out of the market. d. produce their output so that their average cost is minimized.
Refer to the table below. Pat's opportunity cost of delivering a pizza is making: Pizzas MadePer HourPizzasDeliveredPer HourCorey126Pat1015
A. 12 pizzas B. 2/3 of a pizza C. 3/2 of a pizza D. 10 pizzas
Which of the following is the most accurate statement about nominal and real interest rates?
a. Nominal and real interest rates always move together. b. Nominal and real interest rates never move together. c. Nominal and real interest rates often do not move together. d. Nominal and real interest rates always move in opposite directions.