When producers do not have to pay the full cost of producing a product, they tend to:
A. Over-produce the product because of a demand-side market failure
B. Under-produce the product because of a demand-side market failure
C. Under-produce the product because of a supply-side market failure
D. Over-produce the product because of a supply-side market failure
D. Over-produce the product because of a supply-side market failure
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If tastes are homothetic, there exists a utility function (that represents those tastes) such that the indirect utility function is homogeneous of degree 1 in income.
Answer the following statement true (T) or false (F)
In response to accounting scandals in 2002, the federal government passed legislation requiring that corporate directors have a certain level of expertise with financial information and mandating that chief executive officers personally certify the
accuracy of financial statements. What is the name of this legislation? A) the 24th amendment to the Constitution B) the Sarbanes-Oxley Act C) the Kennedy-Lott Act D) the Accountant Reliability Act
In the simple Keynesian aggregate expenditure model, the equilibrium level of disposable income is achieved when:
a. the employment rate is equal to the labor force participation rate. b. saving equals investment c. aggregate expenditures exceed output. d. aggregate expenditures are equal to real disposable income.
Fiscal policies are different from monetary policies because:
a. Fiscal policies affect only aggregate supply and monetary policies affect only aggregate demand. b. Fiscal policies affect only aggregate demand and monetary policies affect only aggregate supply. c. Fiscal policies are enacted by central banks and monetary policies are enacted by Congress or Parliament. d. Fiscal policies are mainly concerned with changing government spending and taxation, and monetary policies are mainly concerned with changing the money supply.