Marginal social cost is equal to the
A) sum of marginal private cost and marginal external cost.
B) sum of marginal private cost and marginal private benefit.
C) marginal cost incurred by the producer of the good.
D) marginal cost imposed on others.
A
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The Herfindahl-Hirschman Index is used to ________
A) measure the price elasticity of demand faced by a firm B) estimate the degree of competition in an industry C) measure the price elasticity of market supply in an industry D) estimate the profit earned by firms in an industry
If the number of employees who quit, are fired, or retire increases while the hiring of new employees declines, this indicates that the
A) labor supply curve is shifting to the right. B) labor demand curve is shifting to the left. C) labor demand curve is shifting to the right. D) labor supply curve and labor demand curve are both shifting to the right.
When the actual reserve-deposit ratio exceeds the desired reserve-deposit ratio banks:
A. make more loans. B. do nothing because this is a profitable situation. C. send the extra reserves to the central bank. D. stop making loans.
The government's role in limiting smoking in many buildings is justified by considerations of
A. Market power. B. Government failure. C. Externalities. D. Inequity.