A state tax assessed specifically on cigarettes is an example of

A manufacturer of grenade launchers estimates that the probability of a fatal accident caused by the design of its product is 1/80,000 and the value of a life lost is $2 million

The manufacturer can change the design to eliminate that chance for $20 per grenade launcher and is prepared to incorporate all cost-justified precautions. Will the manufacturer change the design? What would the benevolent social planner think about the manufacturer's decision if the true value of a life is actually $1.5 million?

Refer to the information provided in Figure 26.3 below to answer the question(s) that follow. Figure 26.3Refer to Figure 26.3. During the 1980s, many firms in the United States were not investing in new capital. This would have caused

A. the economy to move from Point C to Point B along AS1. B. the economy to move from Point B to Point A along AS1. C. the short-run aggregate supply curve to shift from AS1 to AS2. D. the short-run aggregate supply curve to shift from AS1 to AS0.