One method of correcting for ____ externalities is to create a ____ to make sure the market accounts for all costs and benefits
a. market failure; tax
b. negative; tax
c. positive; mechanism
d. positive; tax
e. negative; free market
b
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When you see a mansion and think to yourself that it must be worth a million dollars, you are using money to perform which function?
A) medium of exchange B) unit of account C) store of value D) means of payment E) method of avoiding barter
A firm that acquires a substitute product can try to reduce inter-product cannibalization by
a. Doing nothing b. Repositioning its product or the substitute so that they do not directly compete with each other c. Pricing each product at the same level d. Lowering the prices on both the products
Refer to the above figure. If the economy is currently operating at point C, then there is
A. unemployment. B. a recessionary gap. C. deflation. D. an inflationary gap.
When the price of a good increases, what would we expect to see in the markets for its substitutes?
A. Higher prices and increased sales B. Lower prices and increased sales C. Higher prices and decreased sales D. Lower prices and decreased sales