______________ stabilizers are programs that are already laws that stimulate aggregate demand in a recession and hold down aggregate demand in a potentially inflationary period.
a. Automatic
b. Temporary
c. Planned
d. Economic
a. Automatic
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A production function of the form Q = 40 L.75 K.20exhibits ________ in the long run.
A. diminishing returns to the variable input B. decreasing returns to scale C. increasing returns to scale D. constant returns to scale
When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production
A) eliminates B) is less than C) is equal to D) is greater than
If the production of a product results in significant external costs, an appropriate government policy might be to
A) subsidize the production of the good. B) tax producers and thus shift the supply curve to the left. C) tax consumers' incomes and thus shift the demand curve to the left. D) subsidize consumers since the good is being under-consumed.
If a firm is able to collect the entire producer surplus, it is said to have practiced perfect price discrimination
a. True b. False Indicate whether the statement is true or false