In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price
Indicate whether the statement is true or false
TRUE
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The problem of scarcity
A. applies to market-based economies. B. applies to centrally planned economies. C. applies only to the economies of less-developed countries. D. applies to all of these economies, not just one type.
What is the relationship among the current account, the financial account, and the balance of payments?
What will be an ideal response?
When the price level rises unexpectedly, some businesses may mistake part of the increase for an increase in the price of their product relative to others and so decrease their production
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a sharp drop in oil prices results in ________ output in the short run and ________ output in the long run.
A. lower; higher B. higher; higher C. higher; potential D. lower; potential