An economic agent ________ when he accounts for the full costs and benefits of his actions
A) is called a free rider
B) internalizes an externality
C) maximizes his profit
D) is called a rent seeker
B
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A change in quantity supplied of a product is the result of a change in
A) the price of the product. B) consumer income. C) the cost of producing the product. D) the state of production technology.
Microprudential supervision does all of the following EXCEPT
A) checking capital ratios of a bank. B) checking a bank's compliance with disclosure requirements. C) assessing the riskiness of an individual bank's activities. D) focusing on financial system liquidity.
If the price of a competitive firm's output increases, the firm responds in the short run by demanding more labor
What will be an ideal response?
Which of the following is not an example of a Pareto improvement?
a. You buy a dozen oranges at a produce stand. b. Two children trade baseball cards. c. Your sister buys a new car. d. Two adults trade cars. e. A man is robbed at gunpoint.