In the above figure, to achieve efficiency, the government should
A) impose a tax of $2 per unit.
B) impose a tax of $3 per unit.
C) offer a subsidy of $2 per unit.
D) offer a subsidy of $3 per unit.
C
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Expansionary monetary policy during periods of underutilized resources can cause
A) real Gross Domestic Product (GDP) to increase without an increase in the price level. B) real Gross Domestic Product (GDP) to increase with a decrease in the price level. C) real Gross Domestic Product (GDP) to increase with an increase in the price level. D) nominal Gross Domestic Product (GDP) to increase but cannot affect real Gross Domestic Product (GDP).
Brittany must write a political science term paper and prepare for an economics exam. The production possibilities curve between political science and economics preparation is a straight line. As time spent studying economics increases, the opportunity cost of studying for economics: a. increases
b. remains the same. c. decreases. d. first increases then decreases.