The figure above shows the marginal social cost of generating electricity and the marginal private cost. For 4 billion kilowatts, what is the marginal external cost?
A) $0.12
B) $0.08
C) $0.04
D) $0.00
E) $0.20
C
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Empirical studies indicate that the maximum amount of air pollution occurs ________ levels of real GDP per person.
A. at the lowest B. at "middle-income" C. equally at all D. at the highest
In his famous article published in an economics journal in 1958, A.W. Phillips
a. used data for the United States to show a negative relationship between the rate of change of the U.S. consumer price index and the U.S. unemployment rate. b. used data for the United States to show a negative relationship between the rate of change of wages in the U.S. and the U.S. unemployment rate. c. used data for the United Kingdom to show a negative relationship between the rate of change of the U.K. consumer price index and the U.K. unemployment rate. d. used data for the United Kingdom to show a negative relationship between the rate of change of wages in the U.K. and the U.K. unemployment rate.
Which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy"?
What will be an ideal response?
Exhibit 5-9 Supply and Demand Curves for Good X
?
In Exhibit 5-9, assume the government places a $200 per unit sales tax on Good X. The percentage of the burden of taxation paid by consumers of Good X is:
A. zero. B. 25 percent. C. 50 percent. D. 100 percent.