When external benefits are present,
A) competitive markets are efficient.
B) competitive markets are inefficient.
C) a tax is required to eliminate the inefficiency.
D) property rights have already been established.
B
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Explain the reasons firms might follow the Baumol model of maximizing revenue subject to achieving a minimum level of profits
What will be an ideal response?
Which of the following statements best describes one of the schools of thought regarding the “new economy” controversy?
a. Increased military spending post-9/11 has contributed to the growth in U.S. productivity. b. Extraordinary advances in communications and information technology have contributed to the growth in U.S. productivity. c. The increase in immigration has contributed to the growth in U.S. productivity. d. The aging U.S. population has contributed to the growth in U.S. productivity.
Because a decrease in the nominal interest rate reduces the opportunity costs of holding money, the money demand curve:
A. slopes upward. B. shifts to the right. C. slopes downward. D. shifts to the left.
The premise of Head Start is that
A. early childhood education can make a substantial difference in the future lives of children. B. poor parents aren't very good parents. C. day care for the poor will allow the poor to make a better living. D. B) and C)