Suppose the optimal amount of X is 100 units and that the market provides 123 units. This situation is descriptive of
A. externality provision.
B. market failure.
C. asymmetric information.
D. a public goods problem.
E. the free-rider dilemma.
Answer: B
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When wages or benefits are automatically increased based on the reported inflation rate, it is called the ________ adjustment
A) cost-of-living B) change in imports C) natural flow of money D) change in exports
In order to have a stable economy, what is the necessary relationship between income and spending? What must then be the relationship between leakages and injections?
What will be an ideal response?
_____ transactions refer to the export and import of goods and services as well as any international earnings on investments, both public and private
a. Current account b. Capital account c. Official reserve account d. Savings account
Refer to the graph shown. If hamburgers are produced by a pure monopoly firm that maximizes profit, the social cost of monopoly will be represented by the area:
A. GFHJ. B. ABCG. C. BFC. D. ABFG.