When the marginal social cost of the production of Good A is greater than the marginal private cost of the production of Good A, then
A) a competitive, unregulated market produces less than the efficient quantity of Good A.
B) a competitive, unregulated market produces the efficient quantity of Good A.
C) a competitive, unregulated market produces more than the efficient quantity of Good A.
D) the government should levy a tax on the production of Good A that is equal to the horizontal distance between the two marginal cost curves.
C
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In a floating exchange rate system, an increase in the value of the exchange rate could be caused by
a. an increase in taxes. b. an decrease in government spending. c. a decrease in the domestic money supply. d. a decrease in exports.
Which of the following is a characteristic of perfect competition?
a. easy entry into or exit from the market b. a small number of buyers c. a high degree of government regulation d. a differentiated product e. a high degree of collusion