Refer to figure above. Which of the following will help shift the supply curve f
ID: 1092713 • Letter: R
Question
Refer to figure above. Which of the following will help shift the supply curve from S private to S social? New technology that increases output Technology that reduces labor Steps to externalize the costs involved Regulation to internalize the costs involved Refer to figure above. Which of the following observations is correct? The equilibrium at P1 and Q1 is efficient The equilibrium at P2 and Q2 is inefficient True supply curve is above the demand curve at Q1 From society's standpoint, Q1 is the efficient level of output Refer to figure above. The area bounded by what letters represents the associated efficiency loss resulting when there are external benefits associated with education? A,b,c O, Po, a, Qo O, P1, b, Q1 Qo, c, b, Q1 Refer to figure above. Suppose education provides spillover benefits to the community as illustrated in the diagram. Based on the information, we can say that The market would fall short of the desirable level of education Education is overproduced by Q1 minus Qo units Socially optimal quantity of education is Qo units Socially optimal quantity of education is Q1 units If the typical firm in perfectly competitive market shown above, what would be most likely to occur? Existing firms would be likely to exit; increasing the market price Existing firms would be likely to exit: decreasing the market price Firm would neither enter nor exit and the market price would remain unchanged New firms would be likely to enter, increasing the market price New firms would be likely to enter, decreasing the market price If the typical firm in perfectly competitive market shown above, what would be most likely to occur? Existing firms would be likely to exit, increasing the market price Existing firms would be likely to exit, decreasing the market price Firm would neither enter nor exit and the market price would remain unchanged New firms would be likely to enter, increasing the market price New firms would be likely to enter, decreasing the market price What type of demand curve is shown in graph above? Relatively elastic Relatively inelastic Unit elastic Perfectly elastic Perfectly inelastic Ceteris Paribus, which of the following situations would result in the largest quantity of money demanded? When nominal GDP= 1.4 trillion and the interest rate 3% When nominal GDP= 1.4 trillion and the interest rate 6% When nominal GDP= 1.2 trillion and the interest rate 5% When nominal GDP= 800 billion and the interest rate 4%Explanation / Answer
1. Regulation to internalize the cost involved.
so that you need produce the less quantity by regulating the internal cost.
b. true supply curve is above the demand curve at Q1.
2. area will under a.b.c
b . education is overproduced by Q1- Qo units.
3. E. New frims would likely to entert decreasing the market price.
4. B. Relavtively inelastic curve.
An elasticity alternative in which relatively large changes in one variable (usually price) cause relatively small changes in another variable (usually quantity). In other words, quantity is not very responsive to price.
When nominal GDP is 1.4 trillion and interest rate is 3%