In order for a Pigovian tax to be effective, it must:
A. be imposed on the consumer.
B. be imposed on the producer.
C. be imposed on those affected by the externality.
D. None of these statements is true.
D. None of these statements is true.
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If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm earning?
What will be an ideal response?
Which of the following explains the effect of prices on profits in the short-run?
a. The direct relationship between aggregate quantity demanded and national output. b. The direct relationship between aggregate quantity supplied and the price level. c. The inverse relationship between aggregate quantity demanded and national output. d. The inverse relationship between aggregate quantity supplied and profits. e. The inverse relationship between aggregate quantity supplied and national output.
For the Cobb-Douglas production function F(L,K) = AL?K?, a factor-neutral technical change would be represented by:
A. an increase in the value of ?. B. an increase in the value of ?. C. values of ? and ? for which ? + ? = 1. D. an increase in the value of A.
The principal economic cost of growth is:
A. higher interest rates B. higher inflation rates C. higher unemployment rates D. consumption sacrificed for capital formation