Under perfect price discrimination, consumer surplus
A) is less than zero.
B) is greater than zero.
C) equals zero.
D) is maximized.
C
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The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
A. depreciating dollar, and a larger current account deficit. B. depreciating dollar, and a smaller current account deficit. C. appreciating dollar, and a larger current account deficit. D. appreciating dollar, and a smaller current account deficit.
Which one of the following is a characteristic of capitalism but not of communism?
a. private property. b. wage payments. c. technological development. d. use of capital equipment.
User cost is equal to ________
A) interest cost plus the expected rate of change in the real price of capital plus depreciation B) interest cost minus the rate of depreciation C) interest cost minus the expected rate of change of the real price of capital plus depreciation D) interest cost plus depreciation
A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because
A) it places a unfair burden on small producers. B) a uniform tax can only account for social costs and not external costs. C) a firm will reduce production. D) it may not adequately account for economic damages.