Relative prices formed in a market process
What will be an ideal response?
provide information on the relative scarcity of goods.
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When private benefits equal social benefits, it means that:
A. positive externalities are present in the market. B. negative externalities are present in the market. C. positive externalities are not present in the market. D. no externality of any kind is present in the market.
A central bank that accommodates an aggregate supply shock
a. increases the money supply, making the inflation rate rise. b. increases the money supply, making the inflation rate fall. c. decreases the money supply, making the inflation rate rise. d. decreases the money supply, making the inflation rate fall.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
A decrease in inflationary expectations that causes firms to decrease their prices shifts the
A. aggregate supply curve to the left. B. aggregate demand curve to the left. C. aggregate demand curve to the right. D. aggregate supply curve to the right.