If it's possible to eliminate the problems created by externalities, why do they persist?
A. It can be difficult to coordinate the millions of market participants.
B. Creating a more efficient solution does not mean it will have a fair distribution of that surplus.
C. They can be diffuse, complex, and hard to control.
D. All of these statements are true.
D. All of these statements are true.
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The figure above shows the market for annual influenza immunizations the United States. Area A is the
A) total deadweight loss when there is not the illustrated subsidy. B) remaining deadweight loss when there is the illustrated subsidy. C) gain in efficiency from the illustrated subsidy. D) loss in efficiency from the illustrated subsidy. E) consumer surplus with the illustrated subsidy.
Which of the following is a problem that arises when trying to classify regional trade agreements?
A) Many agreements combine elements from different categories. B) The definition of free trade area includes that of a customs union. C) Some agreements include cultural issues while others do not. D) The most favored nation clause includes all of them. E) None of the above.
Companies cannot avoid prisoner dilemmas
Indicate whether the statement is true or false
There is an inverse relationship between inflation and unemployment in the short run and this can be seen as an
A. example of the equality-efficiency trade-off. B. example of the impact of comparative advantage. C. example of macroeconomic policy choices. D. example of an externality. E. example of the use of abstraction in economic analysis.