BM1101 Business Economics (PRD2 A 2023/24)

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Figure 10-9

Refer to Figure 10-9, Panel (b) and Panel (c). The installation of a scrubber in a smokestack reduces the emission of harmful chemicals from the smokestack. Therefore, the socially optimal quantity of smokestack scrubbers is represented by point

Q2.

0%

Q3.

❌

Q5.

0%

Q4.

0%

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Figure 10-10

Refer to Figure 10-10. A decrease in output from 160 units to 120 units would

reduce the external cost per unit of output.

0%

increase total economic well-being.

✅

move the market from a socially efficient outcome to a socially inefficient outcome.

0%

not be an action of which a benevolent social planner would approve.

0%

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Figure 4-17

Refer to Figure 4-17. At a price of

$5, there is a shortage of $25.

0%

$7, there is a surplus of 4 units.

0%

$5, there is a surplus of 25 units.

0%

$2, there is a surplus of 6 units.

❌

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Figure 4-14

Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

The cost of an input to the production of this good increases.

✅

The price of a substitute good decreases.

0%

There is an improvement in the technology used to produce this good.

0%

This good becomes very popular.

0%

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Figure 4-17

Refer to Figure 4-17. At a price of

$5, there is a shortage of $25.

0%

$7, there is a surplus of 4 units.

0%

$5, there is a surplus of 25 units.

0%

$2, there is a surplus of 6 units.

❌

Переглянути це питання

Figure 4-14

Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

The cost of an input to the production of this good increases.

✅

The price of a substitute good decreases.

0%

There is an improvement in the technology used to produce this good.

0%

This good becomes very popular.

0%

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