When you paint the outside of your house, you not only enjoy a private benefit for yourself, but you also provide a(n) __________________ benefit.
Fill in the blank(s) with the appropriate word(s).
external (social)
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The residents of a particular town typically enjoy taking their dogs along when they go to their local park for recreation and picnics. Everybody enjoys the park more when each group cleans up after themselves and their pets, but nobody enjoys the act of cleaning up after themselves or their dogs. We can expect the park to be _____ because of the _____
a. dirty; prisoner's dilemma b. clean; prisoner's dilemma c. dirty; overuse of a common resource d. clean; overuse of a common resource
According to Keynesian theory
A. changes in the equilibrium interest rate will not always equate saving and investment. B. prices and wages are flexible downward. C. say's law is valid. D. savers and investors have identical motives.
Some resources are better suited to produce certain goods than other resources. This fact leads to
A) a linear production possibilities curve. B) inefficiency in the economy. C) the law of increasing additional cost. D) increases in technology.
Some contend that the outcome of any free market is ultimately inequitable because
A. some people become rich while others remain very poor. B. public goods will be underprovided by the government. C. periods of unemployment and inflation still occur. D. firms are not forced to take external costs into account.