An unregulated paper firm that pours waste into a waterway
A. is producing at a quantity where marginal social cost is greater than marginal social benefit..
B. is producing at a quantity where marginal social benefit is greater than marginal social cost.
C. is producing the social optimal quantity.
D. has taken social cost into account.
Answer: A
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If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, ________ potentially faces a hold-up problem as the firm invested in a ________.
A) Mario's Pizza; transaction-specific asset B) Red Tomatoes; negotiation asset C) Red Tomatoes; transaction-specific asset D) Mario's Pizza; negotiation asset
When total planned real expenditures change due to changes in the cost of borrowing that result from variations in the price level, this is known as the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
The nominal wage represents: a. the wage measured in terms of the quantity of goods and services a worker can purchase with it
b. the wage measured in terms of the dollar value of the goods and services a worker can purchase with it. c. the real wage from which personal taxes has been deducted. d. the standard of living of workers across time. e. the change in real wage brought about by changes in aggregate supply.
The law of supply states that, other things equal, an increase in
a. price causes quantity supplied to increase. b. price causes quantity supplied to decrease. c. quantity supplied causes price to increase. d. quantity supplied causes price to decrease.