Discharges of chemicals from a paper plant that pollute a nearby river represent an example of
a. internal costs.
b. the underground economy.
c. social costs.
d. transfer costs.
c. social costs.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will
A. attract other firms to enter the industry, causing the existing firms' profits to shrink. B. cause firms to standardize their product to limit the degree of competition. C. reduce the excess capacity in the industry as firms expand production. D. make the industry allocatively efficient as each firm seeks to maintain its profits.
In which of these markets would the firms be facing the least elastic demand curve?
A) perfect competition B) pure monopoly C) monopolistic competition D) oligopoly
The balance of payments deficit is the amount by which the quantity supplied of a country’s currency (per year) exceeds the quantity demanded..
Answer the following statement true (T) or false (F)