« previous next »

Author Question: The U.S. economy is experiencing rising output, rising employment, rising incomes and falling ... (Read 105 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle
 
  A) expansion.
  B) peak.
  C) trend.
  D) recession.
  E) trough.

Question 2

If the production of a good causes pollution (an external cost), is the unregulated competitive market equilibrium of that product efficient?
 
  What will be an ideal response?


Carliemb17

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The presence of pollution means that the supply curve of the firm, which is also the firm's marginal cost curve, only represents the firm's private costs and ignores all external costs. The equilibrium between supply and demand curves leads to overproduction of this good. The amount produced, therefore, is not efficient because the level of production occurs where the marginal private cost equals the marginal (social) benefit rather than where the marginal social cost equals the marginal (social) benefit.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Percentages of adolescents indicating Benefits and Costs of employment. Percentages of adolescents indicating Benefits and Costs of employment.
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
MAP sensors use three wires: 1.5 volt reference from the PCM 2. Sensor signal (output signal) 3. ... MAP sensors use three wires: 1.5 volt reference from the PCM 2. Sensor signal (output signal) 3. ...
Refraction and the Setting or Rising Sun Refraction and the Setting or Rising Sun
Creating a Continental Economy Creating a Continental Economy
Video: Heart sounds

For a complete list of videos, visit our video library