A monopoly might produce less than the socially optimal amount of pollution because
A) it likes to be a good citizen.
B) it sets price above marginal cost.
C) it earns economic profit.
D) it internalizes the external costs.
B
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The Kansas-Nebraska Act of 1854 did not allow popular sovereignty over the issue of slavery
Indicate whether the statement is true or false
An inflationary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP
a. exceed b. equal c. fall short of d. are greater than
Explain the concept of scale economies. Explain the difference between internal and external scale economies. What pattern of trade do we expect to see in industries with substantial external scale economies?
What will be an ideal response?
Use the extended AD–AS model to explain how inflation depends on aggregate demand and not the level of real GDP.
What will be an ideal response?