Positive externalities can be an example of market failure
Indicate whether the statement is true or false
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For a given level of inflation, if there is a greater reluctance by foreigners to purchase domestic goods, then the ________ shifts ________.
A. short-run aggregate supply line; downward B. aggregate demand curve; right C. short-run aggregate supply line; upward D. aggregate demand curve; left
When Annie puts her money in her sock drawer for purchases later on, money is acting as a
A) unit of accounting. B) standard of deferred payment. C) store of value. D) medium of exchange.
According to the text, the cost-plus-markup procedure
A) is the only sensible way to set prices. B) is a sure-fire way to ruin a business. C) is a general rule of thumb for price searchers. D) can be practiced only by price takers.
Insurance companies practice statistical discrimination because:
A. young males are more likely than other groups to generate insurance claims. B. insurance markets aren't perfectly competitive. C. young males are willing to pay more for insurance than other groups. D. the demand for insurance is very inelastic.