Refer to the diagram, assuming that the firm represented is operating on curve TC 1 . If the current price of the resource rises by $20, the optimal quantity extracted in the first year will:

If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labor force, the exogenous variable(s) would be

A) income tax rates. B) the size of the labor force. C) both income tax rates and the size of the labor force. D) neither income tax rates nor the size of the labor force.

Changing the price of a good will usually result in a negative externality

Indicate whether the statement is true or false