If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced
b. the same amount of education must be produced, and the price should be lower
c. less education must be produced, and the price should be higher
d. less education must be produced, and the price should be lower
e. less education must be produced at the same price
A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Today, firms in a perfectly competitive market are making an economic profit. In the long run, firms will ________ the market until all firms in the market are ________
A) exit; covering only their total fixed costs B) enter; making zero economic profit C) exit; producing at the minimum point on their long-run average cost curve D) enter; making zero normal profit
Which of the following is a distinguishing characteristic of the oligopoly market structure?
a. easy entry b. difficult entry c. many, many firms d. many, many close substitutes e. firms's horizontal demand curves
In general, team owners move to a new city
A. to get more luxury-box revenue. B. to win. C. to get a new stadium. D. to get a new stadium and to get more luxury-box revenue.