Refer to A Negative Externality Problem. Suppose there is no attempt to internalize the externality. Pigovian analysis indicates that the externality creates a deadweight loss equal to
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation.
a. $0
b. $25
c. $50
d. $100
b. $25
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When looking at data for unemployment and inflation from the 1970s there is evidence to support the short run Phillips Curve.
Answer the following statement true (T) or false (F)
A person is betting a coin will come up heads or tails. The coin always lands on one of these two outcomes. This person can bet to
A) eliminate only the systematic risk. B) eliminate only the random risk. C) eliminate all risk. D) All of the above.
Refer to the figure below. 
The dominant strategy for Row Resorts is to ________, and the dominant strategy for Column Cruises is to ________.
A. keep rates high; offer reduced rates B. offer reduced rates; keep rates high C. offer reduced rates; offer reduced rates D. keep rates high; keep rates high
Excess reserves are:
A. Bank reserves in excess of required reserves. B. Legal reserves in excess of lending reserves. C. Transactions deposits plus traveler's checks. D. Total reserves plus deficient reserves.