Suppose MRS does not equal MRT for all consumers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient.
B) the use of inputs in production is inefficient.
C) the mix of outputs in inefficient.
D) none of the above
C
Economics
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Subsidizing firms that pollute will reduce pollution in the long run.
Answer the following statement true (T) or false (F)
Economics
Inflation inertia is the tendency for inflation to:
A. increase when the Fed decreases interest rates. B. decrease when the Fed increases interest rates. C. change relatively slowly from year to year. D. equal zero.
Economics