An efficient distribution of goods requires that
a. everyone gets an equal share of each good.
b. marginal cost equal marginal utility for the last unit produced.
c. each person derives the same total utility from the good.
d. since tastes differ, every person pays a different price in accordance with different marginal utilities.
b
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The supply of dollars in the foreign exchange market decreases and that means that the supply curve of dollars shifts leftward if
A) the U.S. interest rate differential decreases. B) the expected future exchange rate rises. C) the exchange rate for the dollar rises. D) the U.S. interest rate decreases.
To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a specific tax equal to the marginal cost of producing the good
Indicate whether the statement is true or false