Every allocation of goods in a one good world is efficient because:
a. MRSs are equalized.
b. there is enough to go around for everyone.
c. no one can be made better off without making someone else worse off.
d. it doesn't matter to whom an extra unit of the good is given.
c
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Taxing firms that emit pollutants is one way to reduce pollution.
Answer the following statement true (T) or false (F)
Given the information in the table below, calculate (a) the concentration ratio; and (b) the Herfindahl-Hirschman index.
Why does a high interest rate discourage people from holding their money in cash?
(A) They are fearful of inflation. (B) They cannot be sure that cash will hold its value. (C) They are more concerned that it will be stolen. (D) They can earn interest on the cash if it is invested.
If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:
A. 0.1. B. 1.0. C. 9.0. D. 0.9.