If social cost exceeds private cost, there is
A) underproduction of a good.
B) a negative externality.
C) a positive externality.
D) too little economic profit in the activity.
B
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Suppose the market-clearing price of milk is $3.00 per gallon, but the dairy industry persuades the government to establish a legally-mandated price support at $4.00 per gallon. The newly legislated price tends to
A) increase the supply of milk. B) reduce the demand for milk. C) increase the quantity supplied of milk. D) increase the quantity demanded of milk.
The global financial crisis of 2007-2009 not only led to a worldwide recession, but also a ________ in the European nations that use the euro currency
A) currency devaluation B) budget surplus C) sovereign debt crisis D) tax cut
While on a construction site, Hank, an electrician, slips and falls on an oil-covered floor and injures his back. Hank is not to blame for the accident, and he will keep his job. However, he must stay home for at least two months while he recuperates. Which of the following will pay benefits to Hank while he recovers?
a. Workman’s compensation insurance b. Unemployment insurance c. Secondary insurance d. Liability insurance
States that developed successful and sound commercial banking systems in the antebellum period included all of the following except:
a. New York. b. Ohio. c. Michigan. d. Louisiana.