ECO 450 Week 3 Quiz
Which of the following is a normative statement?
If a government desires to increase production beyond the current competitively determined efficient level, the government should:
If the efficient output of a good is produced each week, then the:
Diamonds are sold by a monopoly firm that maximizes profits. Then it follows that:
The marginal social cost of bread exceeds the marginal social benefit at the current weekly output. Therefore,
An efficient level of output means:
Positive economics is:
Suppose the efficient output currently prevails in the market for ice cream. A tax on ice cream con¬sumption will:
The extra benefit on one more unit of a good or service is its:
The total social benefit of automobiles equals the total social cost at current annual output. Then it follows that:
Normative economics is:
A move from an inefficient resource allocation to an efficient one:
If efficiency has been attained,
Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 1,000 units and an efficient price of $100.00 per unit, what efficient quantity-price combination would be consistent with a negative externality?
Electric power is produced by an unregulated monopoly in a certain region. The monopolistic elec¬tric power company’s production of electricity results in $10 per kilowatt hour of pollution damage to parties other than the buyers of electricity in the region. To achieve efficiency,
If the marginal costs of reducing emissions varies among regions, then regulations requiring all regions in a nation to reduce...