Identify the correct statement about a corrective tax.
a. Equilibrium occurs at a lower market price after the tax is imposed
b. The social cost curve lies below the private cost curve in the absence of the tax.
c. A market becomes allocatively efficient after the tax is imposed.
d. The socially optimal level of output is more than the market equilibrium output in the absence of the tax.
c
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Which of the following is true?
i. A rational choice is made on the margin. ii. Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii. Economists try to understand how the economic world works by testing normative statements. A) only i B) i and iii C) only ii D) only iii E) i and ii
Lana spent $5 to see a movie. We know
A. the movie was worth 500 utils. B. Lana’s total utility from movies was $5. C. the movie was worth at least $5 worth of other goods. D. the movie increased marginal utility.
Public goods are overproduced in the marketplace
a. True b. False Indicate whether the statement is true or false
The nominal interest rate is eight percent and the consumer price index rises from 140 to 147 . What is the real interest rate?