To achieve the efficient amount of use of a common resource, the use should be such that ________ equals ________
A) marginal social cost; marginal private cost
B) marginal social cost; marginal social benefit
C) marginal social benefit; marginal private cost
D) marginal private cost; marginal private benefit
B
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There are asymmetric incentives to support and to oppose protectionist trade policies, with the stronger incentives going to those that would seek protection
Indicate whether the statement is true or false
If only current income is considered, beer taxes are _____. If lifetime income is considered, however, beer taxes are _____
a. regressive; progressive b. regressive; proportional c. progressive; regressive d. proportional; progressive
Perfect Shots is company specializing in wedding photos and they have a fixed advertising budget. Perfect Shots advertises on the radio and the television and it costs $5,000 per unit of radio advertising and $15,000 per unit of television advertising. At their current advertising levels, the marginal benefit from radio advertising is $5,800 and the marginal benefit from television advertising is
$14,250. To optimally allocate their advertising budget, Perfect Shots should ________. A) increase the amount of advertising in radio and television B) increase the amount of advertising in radio and decrease the amount of advertising in television C) decrease the amount of advertising in radio and television D) decrease the amount of advertising in radio and increase the amount of advertising in television
Which of the following would not cause a shift in the supply curve for a good?
a. An increase in demand for that good. b. An increase in the cost of labor used to produce that good. c. A change in the cost of raw materials used to produce that good. d. A decrease in the cost of machinery used to produce that good.