Economic growth is shown by a shift of the production possibilities curve outward and to the right.
Answer the following statement true (T) or false (F)
True
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"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are no positive or negative externalities in the market. B) is true only if there are positive externalities in production in the market. C) is true in theory, but economic efficiency cannot be achieved in a real market. D) is true only if there are no negative externalities in the market.
In a market of monopolistic competition, there will be
a. a kink in the demand curves for the output of the individual sellers. b. product differentiation. c. a substantial substitution effect whenever any one firm changes its price. d. All of these.
The failure of the mercantilism policy and the tax policy during the Great Depression proves that economic policies are meaningless and they do more harm than good
a. True b. False Indicate whether the statement is true or false
Which of the following is FALSE?
A. If social costs are greater than private costs, "too much" of a good is being produced. B. Pollution is a social cost. C. Private costs do not include external costs. D. Social costs do not include private costs.