If a good is produced by firms that incur all private and external costs, the price consumers pay
A) will be efficient since it includes all social costs.
B) will not be socially acceptable.
C) will be too high because the consumers end up paying all of the costs instead of the firm.
D) will be the correct price, but inefficient.
Answer: A
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Some policy makers have suggested that mandatory health insurance coverage would:
A. help to reduce the cost of health care. B. overcome adverse selection in the market for health insurance. C. keep premiums lower than if healthy people could opt out. D. All of these statements are true.
Which of the following is a leading business cycle indicator?
a. The unemployment rate. b. The volume of outstanding commercial loans. c. New building permits. d. Personal income.
In a bilateral monopoly, the wage rate that is determined in the market
A) is equal to MFC. B) is equal to MRP. C) is indeterminate. D) is the same as in a perfectly competitive market.
If you were going to evaluate the wisdom of an investment made now that created a stream of profits in the future, which Excel function would help you calculate it?
A. Sum B. Invest C. PV D. Profit