Society is likely to over-allocate resources to produce goods that
A) are public goods.
B) are merit goods.
C) generate positive externalities.
D) generate negative externalities.
D
You might also like to view...
A basic precondition necessary to achieve economic growth is
A) a well-organized work force. B) well-functioning factories. C) a strong central government that directs the nation's research and development activities. D) a well-functioning legal system. E) well-being of society.
Assume weak growth in aggregate demand keeps the economy below potential GDP, so unemployment rises but inflation falls. This explains the ________ slope of the short-run Phillips curve
A) infinite B) positive C) negative D) zero
Which of the following statements about exchange is true?
a. If everyone starts off with the same quantities of each good, it would be impossible to realize gains from trade. b. Exchange tends to move each good toward those individuals who value the good more highly. c. Exchange always results in one party being made better off and the other being made worse off. d. For trade to occur, everyone must start off with the same value of the good that is traded.
Which of the following is NOT one of the common explanations given for the U.S. trade deficit?
A. Other countries subsidize their exports. B. The U.S. government has a large budget deficit. C. The United States is a wealthy, stable country, making it attractive for loans from other countries. D. U.S. income tax rates are high compared to those in other countries.