Consider a market in which there is an external benefit. A private subsidy paid to producers can be used to arrive at the efficient market equilibrium because the subsidy will
A) increase the quantity produced.
B) decrease the supply of the good.
C) increase the price demanders pay.
D) decrease demand.
A
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Which of the following is most consistent with the idea that if it's worth doing, it's worth doing imperfectly?
a. When Mia cleaned her apartment, she didn't clean under the refrigerator. b. Mason is so disorganized that he spends 15 minutes every day trying to find his glasses. c. The senator stated, "No price is too high to save a life!" d. Ford's new policy is to make every car completely safe.
If business inventories decrease below desired levels, then it is most likely that a
A. Higher price level will occur. B. Lower level of output will occur. C. Recessionary gap will occur. D. Higher level of unemployment will result.