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Author Question: Which of the following happens when a Pigouvian subsidy is provided? A) The marginal social cost ... (Read 16 times)

imanialler

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on: Jun 29, 2018
Which of the following happens when a Pigouvian subsidy is provided?
 
  A) The marginal social cost curve shifts upward.
  B) The marginal private cost curve shifts downward.
  C) The marginal social benefit curve shifts downward.
  D) The marginal private benefit curve shifts upward.

Question 2

Other things remaining the same, which of the following is likely to happen if an industry introduces labor-saving technology in production?
 
  A) There will be a decrease in both the wage rate and the employment levels in the industry.
  B) There will be a rise in both the wage rate and the employment levels in the industry.
  C) There will be a rise in the wage rate and a decrease in the employment levels in the industry.
  D) There will be a decrease in the wage rate and a rise in the employment levels in the industry.


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jordangronback

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


imanialler

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Reply 2 on: Jun 29, 2018
Gracias!

komodo7

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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