In the above figure, if the market is competitive and unregulated, then at the equilibrium amount of output the marginal social benefit is
A) less than the marginal cost to producers.
B) greater than the marginal social cost.
C) equal to the marginal cost to producers.
D) equal to the marginal private benefit from consumption.
B
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The analysis of the competition between Apple and Samsung in the smartphone market is based on
A) microeconomic model. B) educated guessing. C) intuitive reasoning. D) consumer surveys.
Which of the following statements is most correct?
A. A sterilized foreign exchange intervention will alter the composition of a central bank's assets and alter commercial bank reserves. B. A sterilized foreign exchange intervention will leave the central bank's holdings of foreign reserves unchanged. C. A sterilized foreign exchange intervention will not alter the composition of a central bank's assets. D. An unsterilized foreign exchange intervention will alter commercial bank reserves.
What is the main difference between a customs union and a free trade area?
a. There are no restrictions on the movement of labor and capital among customs union member countries, whereas labor and capital cannot move freely among free-trade member countries. b. Customs union member countries use identical tariffs, whereas free-trade area member countries have different tariff structures. c. There is free trade among customs union member countries but not among free-trade area member countries. d. Customs union member countries have adopted a common currency, whereas free-trade member countries use their separate national currencies
Which of the following statements is most correct?
A. Financial intermediaries are banks. B. A bank is a financial intermediary. C. Financial intermediaries are essential to direct finance. D. Financial intermediaries are insurance companies.