Clearly defined property rights can create negative externalities
Indicate whether the statement is true or false
False
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Shares of stock are:
A. legal promises to make regular payments to the stockholder. B. claims to partial ownership of a firm. C. legal promises to repay a debt. D. regular payments made to owners of a firm.
An open market purchase, a decrease in the discount rate, and a decrease in the reserve requirement would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
Points outside the production possibilities frontier represent
a. unemployment of resources b. inefficient use of resources c. combinations that are attainable only if all resources are used fully and efficiently d. currently unattainable combinations of outputs e. the only currently attainable combinations from which society must choose
Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply. b. Because producers ignore the external costs they impose on third-parties. c. Because producers manufacture more goods than people can afford to buy. d. Because producers will receive an unequal distribution of profits.