When a negative externality exists in the case of a particular good, and if that is not reflected in the price, _____
a. too little of that good is produced and consumed
b. too much of that good is produced and consumed
c. all resources are taken away from the production of that good
d. the government completely prohibits the consumption of that good
e. all resources are allocated to the production of that good
b
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If a good has a price elasticity of demand equal to 0, ________
A) the percentage change in quantity demanded for the good will be greater than the percentage change in its price B) the demand curve of the good is upward sloping C) the smallest increase in its price causes consumers to stop consuming it completely D) the quantity demanded is completely unaffected by a change in its price
Suppose Nara could invest her $1000 in a savings account or she could invest in the stock market
After one year, the savings account has a guaranteed 5 percent interest rate and the stock market has a 10 percent chance of tripling her money, and 90 percent chance of losing it all. What is the difference in Nara's expected wealth between these two options? A) $1050 B) $300 C) $750 D) $50
In the open-economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars
a. supplied for the purpose of selling assets domestically. b. supplied for the purpose of buying foreign assets. c. demanded for the purpose of buying U.S. net exports of goods and services. d. demanded for the purpose of importing foreign goods and services.
A horizontal Security Market Line would imply that investors:
A. are unconcerned about risk and require no additional compensation for risk. B. view all financial assets as equally risky. C. greatly dislike risk and must be compensated for it. D. prefer assets with greater risk.