Unregulated competitive markets for services with negative externalities, such as gambling, tend to establish a price for the service that
A. provides a modest stipend for support of recovering addicts.
B. supports efficient use of scarce resources.
C. is too high to support efficient use of scarce resources.
D. is too low to support efficient use of scarce resources.
Answer: D
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What is the relationship between net exports, the government sector surplus or deficit, and the private sector surplus or deficit?
What will be an ideal response?
The speculative attack on the German mark in 1971 resulted in
A) a large increase in the German monetary base. B) a decline in the value of the mark relative to the dollar. C) a decision to end the floating of the mark against the dollar. D) a large decrease in the German monetary base.
Policies aimed at reducing the natural rate of unemployment are referred to as
a. stabilization policies. b. structural policies. c. macroeconomic policies. d. labor policies.
The law of diminishing returns only applies in cases where:
A. There is increasing scarcity of factors of production B. The price of extra units of a factor is increasing C. There is at least one fixed factor of production D. Capital is a variable input