If a firm that pollutes wants to maximize profits, it will produce where
A. Marginal revenue and private marginal cost are equal.
B. The social value of production equals the social cost of production.
C. Social benefits exceed social costs.
D. Private and social costs are equal.
Answer: A
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If a single union supplies all the labor in a competitive labor market, the union probably will
A. increase labor supply to raise employment. B. restrict labor supply to raise wages. C. increase union membership to increase wages. D. act like a competitive firm.
List four types of government policies which can aid economic growth
What will be an ideal response?
Trade benefits a country by
A) increasing available consumption choices. B) reducing the need for specialization in production. C) reducing the relative price of the exported good. D) increasing the real income of all resource owners. E) increasing the wage rate.
Northeastern farmers responded to increasing western competition in the 1800s by
a. reducing grain cultivation. b. increasing production of dairy products. c. growing hay to feed city horses. d. moving to the city or the West. e. All of the above.