b. Funding for the construction of a statue in Alabama c. The provision of subsi
ID: 1113490 • Letter: B
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b. Funding for the construction of a statue in Alabama c. The provision of subsidies to wheat producers d. Dealing with labor union issues e. The implementation of tort reforms 8. At the market output and price for a good whose !lution. a. the marginal social cost of production is negative -b, the marginal social cost of production exceeds the marginal social benefit of marginal private cost of production d. the marginal social benefit e. the marginal social benefit of production exceeds the marginal private cost of c. the equals the marginal private benefit of of production equals the marginal social cost of production 9·The total welfare cost of a monopoly that engages in rent t-seeking activities: a. equals only the portion of lost consumer surplus that is not transferred to the monopolist. b. includes the use of resources devoted to rent seeking. c equals the loss of welfare in the economy because of barriers to entry d. equals the total economic profit earned by the monopolist. e. excludes the use of resources devoted to rent seeking. 10. The socially efficient level of output is determined where: a. marginal social cost equals marginal social benefit. b. marginal private cost equals marginal social benefit. c. average social cost equals average private cost d. average private cost equals average social benefit. e. total social cost equals total social benefit. 11. A firm's demand curve for investment is its: a. expected annual earnings curve. b. marginal product curve. c. marginal revenue curve. d. expected rate of return on investment curve. e. supply of loanable funds curve. 12. Identify the correct statement about the distribution of income in the United States in the last a.The share of income of the highest fifth quantile has increased in the last two decades because of an increase in the number of double-income households. because of an increase in the number of double-income households. because of an increase in the number of single-parent households. because of a decrease in in-kind transfers b.The share of income of the lowest fifth quantile has increased in the last two desadas e. The share of income of the highest fifth quantile has decreased in the last twn d. The share of income of the lowest fifth quantile has decreased in the last decades Copyright Congage Leaming Powered by CogneroExplanation / Answer
8) the correct option is c. The marginal social cost lies above the marginal private benefit at all points. At the markt equilibrium where the marginal cost equals the marginal benefit, the social marginal cost is above the marginal private cost and the marginal private benefit.
9) The correct option is (c). total welfare equals the Consumer surplus+ producer surplus+government revenue . Here the loss in consumer surplus is not transferred to Producer/ monopolist. This is essentially the deadweight loss.
10. b, because at soical optimal marginal damage is equal to marginal soical cost.
11. d, because investment decisions by a firm depends upon its expected rate of return on investment .
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