In the case of a negative externality, the social marginal cost will:
a. exceed the private marginal cost.
b. be equal to private marginal cost.
c. fall short of private marginal cost.
d. bear no significant relation to private marginal cost.
a
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Refer to the figure above. With the tariff, the quantity of imports falls to
A) 10,000 units. B) 12,000 units. C) 14,000 units. D) 22,000 units.
The intent of parity pricing in the farm industry is to
a. drive inefficient farmers out of business b. allow a market to reach its equilibrium price c. provide only low-income farmers with government aid d. increase farm productivity with new technologies e. maintain farmers' purchasing power relative to nonfarmers
The usual results of an adverse supply shock are
a. a rise in prices and a fall in output. b. a fall in prices and a rise in output. c. increased growth and lower inflation. d. a rise in prices and a rise in output.
Graphically short-run equilibrium occurs at the intersection of the aggregate demand curve and the:
A. long-run aggregate supply line. B. the aggregate expenditure line. C. short-run aggregate supply line and the long-run aggregate supply line D. short-run aggregate supply line.