In a situation in which property rights are not well-defined and social costs exceed private costs, government can use all of the following to induce producers to bring private costs into alignment with social costs EXCEPT
A) taxing production.
B) coercive limits on production.
C) subsidization of production.
D) regulation of production.
C
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The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point D to E?
A) 3000 bottles of wine B) 333 bottles of wine C) 3 bottles of wine D) 1/3 of a bottle of wine E) None of the above answers is correct.
In the foreign exchange market, the higher the dollar's exchange rate, the
A) larger the supply of dollars. B) smaller the quantity supplied of dollars. C) smaller the supply of dollars. D) larger the quantity supplied of dollars.
Refer to Figure 11-2. The curve labeled "E" is
A) the output supply curve. B) the average product curve. C) the marginal product curve. D) the total product curve.
In which of the following situations are wages the least likely to be sticky?
A) Unionized workers are in the second year of a three-year labor contract. B) A firm that pays efficiency wages to its employees is experiencing an economic recession. C) A firm has an implicit contract with its employees regarding wages during recessions and expansions. D) A firm hires hourly workers based on changes in the supply and demand for its products.