When negative externalities are present, the firm's internal costs always
a. exceed the firm's external costs
b. are less than the firm's external costs
c. equal the firm's external costs
d. understate the actual cost of using society's resources producing the good
e. overstate the actual cost of using society's resources producing the good
D
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The money supply is $12.5 million, currency held by the nonbank public is $2.5 million, and the reserve—deposit ratio is 0.25
(a) What is the quantity of bank deposits? (b) What is the quantity of bank reserves? (c) What is the quantity of the monetary base? (d) What is the money multiplier (give a number)?
Current income maintenance programs
A) often provide benefits to people who are working and earning substantially more than the poverty level. B) reduce the incentive of recipients to work. C) have safeguards to ensure that recipients work whenever physically able. D) fail to make the income distribution more equal.
According to the principle of rational choice, if there is diminishing marginal utility:
A. and the price received for supplying a good goes up, you supply less of that good. B. after a certain point, even if the price goes up, you don't supply more of that good. C. and the price received for supplying a good goes up, you supply more of that good. D. the decision producers face about how much to supply is not affected.
How do monopolists influence price and demand?
a. Monopolists can sell any quantity they choose at a given price. b. Monopolists have little control over price. c. When monopolists lower prices, sales fall. d. When monopolists raise prices, sales fall.