Suppose the market-equilibrium quantity of good x is larger than the socially-optimal quantity of good x. Does the production of good x convey a positive externality or does it convey a negative externality?
The production of good x conveys a negative externality.
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A demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant.
Answer the following statement true (T) or false (F)
The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets
When the price ceiling is in place and taking account of the resources lost in search, consumer surplus ________ and producer surplus ________ compared to the equilibrium before the price ceiling was imposed. A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
According to Keynesian theory, the natural forces in the economy may not quickly move the economy toward potential real GDP
a. True b. False Indicate whether the statement is true or false
Kaiser-Permanente, the nation's largest health maintenance organization, was founded:
a. as a network-model HMO. b. as a group-model HMO. c. to provide access to medical care to Kaiser workers in remote locations where medical services were in short supply. d. to provide cost-effective medical care to Kaiser employees. e. to slow the rate of growth in medical spending for Kaiser employees.