In general, pollution is economically inefficient because _____
a. people do not like breathing bad air
b. it is a byproduct of a market exchange
c. producers are only pursuing their own self-interests
d. producers do not have to internalize the opportunity cost of clean air
d
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
In a price-leadership oligopoly, it is much simpler for the price leader to identify its dominant strategy when
a. at least one price follower has a terminal strategy b. it expects competition from the other firms c. it expects other firms to match its prices d. the government actively seeks antitrust penalties e. price equals marginal cost
What assumption does the Ricardian model of comparative advantage make in terms of converting resources?
What will be an ideal response?
A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. at a level higher than the lowest average cost; at a level higher than the lowest average cost B. at the lowest average cost; at the lowest average cost C. at the lowest average cost; at a level higher than the lowest average cost D. at a level higher than the lowest average cost; at the lowest average cost