Which of the following is true about the short-run and long-run supply curves?
a. The long-run supply curve is steeper than the short-run supply curve.
b. The long-run supply curve is vertical while the short-run supply curve is flatter.
c. The long-run supply curve is horizontal while the short-run supply curve is vertical.
d. The long-run supply curve is less steep than the short-run supply curve.
e. The long-run and short-run supply curves have the same slope.
D
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In order for pollution taxes to be effective in eliminating the deadweight loss resulting from pollution, the pollution tax must be set equal to the
A) marginal private cost. B) marginal external cost. C) marginal social cost. D) marginal benefit of polluting. E) price of the good.
A perfectly competitive firm is producing more than the profit-maximizing amount of its product. You can conclude that its
A) total cost exceeds its total revenue. B) average total cost exceeds the price of the product. C) marginal revenue is less than the price of the product. D) marginal cost exceeds the price of the product.
An example of an increase in b, the efficiency of human capital accumulation, is
A) more mandatory school years. B) better teachers. C) better school material. D) better total factor productivity.
A multinational organization that aims to promote world economic growth through more financial stability is
A. the Impossible Mission Force. B. the World Monetary Fund. C. the International Bank. D. the International Monetary Fund.