External benefits cause the market to:
A. underallocate resources.
B. be more efficient.
C. set excessively high prices.
D. have persistent shortages.
Answer: A
You might also like to view...
Refer to the figure above. After the market changes from perfectly competitive to a monopoly:
A) the social surplus decreases. B) the market price decreases. C) the deadweight loss decreases. D) the consumer surplus increases.
An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
A decreased demand for U.S. dollars on the foreign exchange market, all else equal, will result in a depreciation of the U.S. dollar
Indicate whether the statement is true or false
Which of the following defines the "store of value" function of money?
a. A common measurement of the relative value of different goods and services. b. The ability of money to hold value over time. c. That the materials used to manufacture money are of medium grade or quality, so that people will not hoard money for its commodity value. d. That money is widely accepted in exchange for goods and services.