When positive externalities exist, the private market equilibrium represents a
A. market price which is too low and a market quantity which is too high.
B. market price which is too high and a market quantity which is too high.
C. market price which is too high and a market quantity which is too low.
D. market price which is too low and a market quantity which is too low.
Answer: C
You might also like to view...
In response to the financial crisis of 2007 and the ensuing recession, the Fed announced three rounds of "quantitative easing," where the Fed purchased billions of dollars of securities
What impact would quantitative easing have on the monetary base? A) The monetary base would increase. B) The monetary base would decrease. C) The monetary base would not change. D) While the monetary base would change, it is impossible to predict in which direction.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
How can corporate management defend itself against a hostile takeover attempt?
Which of the following statements is true?
A) Indirect business taxes are a component of national income because when added to the other components of national income, the sum must equal GDP. B) Indirect business taxes must be subtracted from national income to yield a figure equal to GDP. C) Indirect business taxes are a part of national income because they are considered a payment to a factor of production. D) Indirect business taxes are not part of national income because they are not considered a payment to a factor of production.