It is difficult for a private market to provide the economically efficient quantity of a public good because
A) by law governments cannot use cost-benefit analysis to determine this quantity.
B) it is too expensive to produce the necessary amount of the good.
C) individual preferences are not revealed in the market for the good.
D) public goods produce positive and negative externalities.
C
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The supply of product X is inelastic (but not perfectly inelastic) if
A. an 8% increase in price generates an 8% increase in quantity supplied. B. a 10% decrease in price does not affect quantity supplied. C. a 7% decrease in price generates a 5% decrease in quantity supplied. D. a 5% increase in price generates a 7% increase in quantity supplied.
In the economic way of thinking, speculation can only occur
A) in a capitalist economy. B) in a society where time-travel is possible. C) under uncertainty. D) under perfect information. E) in an underground or illegal market system.
What does it mean if an industry has external economies?
What will be an ideal response?
If monetary policy is used to control real GDP then fiscal policy is a major determinant of
A) interest rates and economic growth. B) interest rates and the foreign trade deficit. C) unemployment and the foreign exchange rate. D) None of the above.