A possible solution to the problems of external benefits is
A) to tax those receiving the extra benefits.
B) production of the good by government.
C) effluent fees.
D) to restrict the amount of the good through direct government regulation.
Answer: B
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A) Bill, a talented software developer B) Monica, a paid Washington, D.C. intern C) Buggs, an illicit drug smuggler D) All of the above.
A monopolist has the power to set price, but is not entirely free to set the price of its product. Explain
What will be an ideal response?
A country running a balance of payments surplus in a fixed exchange rate system may have to ____ its currency
a. depreciate b. devalue c. revalue d. appreciate
Utility theory assumes that a consumer tries to
A) maximize her average utility. B) maximize her marginal utility. C) maximize the difference between total and marginal utility. D) maximize her total utility.