ECON 2010 FINAL

Assume that the production of good x initially

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Unformatted text preview: es from Boulder) will likely A) Who knows. B) Stay the same or shift to the right C) Stay the same or shift to the left D) Not shift 55. Assume that the production of good x initially involves external costs. The government then taxes all of the firms in this industry such that these external costs are internalized (paid by the firms). One would expect the price of product x to A) rise and industry output to decrease, and this is efficient because less of x is produced and consumed B) rise and industry output to decrease, and this is inefficient because less of x is produced and consumed increases efficiency because it makes it where the marginal social cost = marginal cost Version 1 Page 12 56. If a society is producing on their PPF, then allocations are necessarily efficient. A) True the production would be efficient but the allocation is not necessarily efficient B) False 57. If we want to see how attendance at recitation will respond to a change in the difficulty level of the lectures, we should measure ____ , which is ______. A) The lecture-difficulty elastic...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.

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