It is argued that the market will
A. not produce a nonexcludable public good.
B. produce the socially optimal output of a nonexcludable public good.
C. produce too much of a nonexcludable public good.
D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits.
E. b and d
Answer: A
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The Phillips Curve will shift when
A) the overall employment rate remains unchanged. B) the expected inflation rate changes. C) the price level falls. D) none of the above.
Which of the following would cause an increase in aggregate demand in the short run?
A) an increase in taxes B) an increase in the supply of money C) a decrease in the price level D) a crop failure
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What will be an ideal response?
Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market. b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol. c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol. d. the Peruvian demand for Argentinean goods has increased. e. the supply of Argentinean pesos has increased on the foreign exchange market.