When externalities exist, economic efficiency is achieved when marginal private benefit equals marginal private cost
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following affects the amount of money a person is willing to hold?
A) The use of credit cards increases. B) The price level rises from 103 to 107. C) The interest rate that you earn on your savings account increases. D) All of the above are correct.
The ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percentage change in price is called:
a. price elasticity. b. cost elasticity. c. demand elasticity. d. supply elasticity.
The products in a monopolistically competitive industry are:
A. heterogeneous. B. competitive. C. homogeneous. D. uncompetitive.
Disinflation is
A. a decrease in inflation rates. B. an increase in inflation rates. C. an increase in prices. D. a decrease in prices.