When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private costs.
B. lower when buyers consider social costs.
C. lower when buyers only consider private costs.
D. None of these statements is true.
Answer: C
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Which measure of inflation would include consumer goods and capital goods?
A. the Consumer Price Index B. the Retail Trade Survey C. the GDP Price Index D. the Employment Cost Index
Foreign currency prices of the U.S. dollar are currently determined by a managed float exchange rate system
Indicate whether the statement is true or false
According to the process of creative destruction, at first the entrepreneur will be able to sell the product for
A. a low price because it is not well known. B. a high price because there is no competition. C. a fair price because these are contestable markets. D. at a price of zero until the market is created.
According to supply-side economists, the incentive to save during the Clinton Administration fell due to a combination of
a. an increase in net export and a budget surplus. b. an increase in the tax rates on upper-income Americans and more government regulation. c. higher inflation and higher tax rates on lower-income Americans. d. None of the above