When an external cost exists that is NOT taken into account in the production of a product,
A) the level of output is too low, and the supply curve should shift to the right to account for the externality.
B) the level of output is optimal, and there should be no change in the supply curve.
C) the price of the product is too high, and production should be expanded to lower the price.
D) the level of output is too high, and the supply curve should shift to the left to account for the externality.
D
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Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
A) 0.02 dollars per krone and 0.70 dollars per euro B) 0.05 dollars per krone and 1.30 dollars per euro C) 2.00 dollars per krone and 7.14 dollars per euro D) 0.20 dollars per krone and 1.43 dollars per euro
The money supply curve is vertical if
A) the Fed is able to completely determine the money supply. B) banks and households determine the money supply. C) banks and the Fed jointly determine the money supply. D) households and the Fed jointly determine the money supply.