If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are less than the external costs,
a. More than the efficient amount is being produced
b. Less than the efficient amount is being produced
c. the efficient amount is being produced
d. We do not know whether the efficient amount, or more or less, is being produced.
a
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When a firm becomes so large it is difficult to coordinate and control, it is most likely that
A) economies of scale have begun. B) diseconomies of scale have begun. C) average total cost begins to fall. D) long-run average costs become negative. E) there are increasing marginal returns to increasing the firm's plant size.
Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks to make sure their underwriting standards meet strict standards. b. Their mandate is to develop a secondary market in U.S. mortgages. c. Their mandate is to develop a secondary market in global mortgage markets. d. Their mandate is to develop a primary market in the U.S. mortgage market. e. None of the above.
Refer to the graph shown. U.S. fiscal policy is most likely to shift the demand for dollars from D1 to D2 if it increases U.S.:
A. income. B. imports. C. interest rates. D. prices.
When a firm experiences a positive technological change
A) the price of a share of the firm's stock rises. B) the firm is able to produce more output using the same inputs, or the same output using fewer inputs. C) the firm will hire additional workers in order to increase production. D) the value of the firm's assets rises.