An efficient outcome can always be reached by requiring the individual who produces the externality to fully compensate individuals for any damage inflicted.
Answer the following statement true (T) or false (F)
False
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Refer to the above figure. It represents supply and demand for The Black Ash Steel Company's output. The firm's plant belches large quantities of smelly fumes and black ash into the air
Residents in the surrounding area have higher medical bills as a result. If the firm is forced to pay the full social cost of its production, what will occur? A) Black Ash's supply curve will shift from SA to SB. B) Demand for the firm's steel will shift to the left. C) The company's supply curve will shift from SB to SA. D) Black Ash will increase its own output to cover the cost increase.
Which of the following is a normative statement?
a. The U.S. rate of unemployment was lower in 2004 than it was in 1994. b. Savings accounts earn interest, whereas checking accounts do not. c. Congress must recognize that the growing national debt is the most serious problem that the country faces. d. The unemployment rate increases when the percentage of the labor force without jobs increases. e. The unemployment rate among teenagers is higher than the rate among adults.
Exhibit 7-16 Long-run average cost curves
Which firm in Exhibit 7-16 displays a long-run average cost curve with economies of scale throughout the range of output shown?
A. Firm A. B. Firm B. C. Firm C. D. Firms A and B.
In tit-for-tat, if your partner ________ in your first interaction, then you will ________ in your next interaction.
A. defects; cooperate B. defects; defect C. defects; refuse to play D. cooperates; defect