Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
a. an increase in the supply of electric cars so that the supply curve shifts rightward.
b. an increase in the supply of electric cars so that the supply curve shifts leftward.
c. a decrease in the supply of electric cars so that the supply curve shifts rightward.
d. a decrease in the supply of electric cars so that the supply curve shifts leftward.
a. an increase in the supply of electric cars so that the supply curve shifts rightward.
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When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
In order to correct the problems associated with external costs,
A) the signals given to the economy must change so that decision-makers will take into account all the costs of their actions. B) the government must take over production of industries that are responsible for most of the pollution. C) standards must be established that make it illegal to pollute. D) the prices of all goods must be raised so people will consume less of the world's resources.