The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year
With the quota in place, the amount of cotton produced in Georgestan is ________ because the marginal social cost of a pound of cotton is ________ the marginal social benefit of a pound of cotton. A) inefficient; less than
B) inefficient; greater than
C) efficient; less than
D) efficient; equal to
A
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Which of the following changes would clearly increase the supply of money in the banking system?
a. an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves b. an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves c. a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves d. a decrease in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
At an equilibrium price for gasoline,
a. everyone with the desire and the income to buy gasoline at that price can do so. b. surpluses are inevitable. c. inherent market forces will eventually change the quantities demanded and supplied. d. suppliers must be using the most efficient oil-drilling equipment available.
Suppose that a firm operating in perfectly competitive market sells 50 units of output. Its total revenues from the sale are $500 . Which of the following statements is correct? (i) Marginal revenue equals $5. (ii) Average revenue equals $10. (iii) Price equals $15
a. (i) only b. (ii) only c. (i) and (ii) only d. (i), (ii), and (iii)
Refer to the below table and information. What will be the equilibrium wage rate?
Suppose a single firm has the marginal revenue product schedule for a particular type of labor given in the left table. Assume there are 150 firms with the same marginal-revenue-product schedules for this particular type of labor.
A. $7
B. $8
C. $9
D. $10