A government-inhibited good is one that
A. would be underproduced by the private market.
B. cannot be individually consumed.
C. should be subsidized to correct the market failure and productive inefficiency.
D. has been deemed socially undesirable via the political process.
Answer: D
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Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?
What will be an ideal response?
Under monopolistic competition, firms have prices ________ marginal cost and long-run profits that are ________ (net of fixed costs).
A. above; positive B. above; close to zero C. below; positive D. below; close to zero
Which of the following statements is correct?
a. In both the Keynesian and classical systems, aggregate demand is an important determinant of output and employment b. In classical and monetarist models, money is the primary factor determining changes in aggregate demand. c. Aggregate demand in the Keynesian model is determined entirely by the quantity of money, whereas in the classical model, money is one of several factors determining aggregate demand d. None of the above
According to the ______, the amount of a good or service wanted varies inversely (negatively) with its price, ceteris paribus.
a. equilibrium quality b. equilibrium quantity c. law of demand d. law of supply