If the marginal social benefit of consuming a good or a service exceeds the marginal private benefit
A) a negative externality exists.
B) the market achieves economic efficiency.
C) a positive externality exists.
D) the sum of consumer surplus and producer surplus is maximized.
Answer: C
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When the economy slips into a recession, normally the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant
A) increases; increases; rises B) decreases; decreases; falls C) increases; decreases; falls D) decreases; increases; rises
Which of the following topics is not a part of a typical scenario plan?
a. Cash flows. b. Immigration and emigration. c. Informatics. d. All the above are a part of a typical scenario plan. e. Automation, miniaturization, robotics, and research.
Economists believe that the above-normal economic growth in the United States between 1995 and 2010 was caused primarily by:
A. rising federal budget surpluses that reduced real interest rates. B. increased entrepreneurial activity, application of information technology, and global competition. C. increases in the rate of personal saving. D. expansionary monetary policy.
Opportunity cost can best be defined as
A. the value of the next-highest-ranked alternative. B. the value of all of the alternatives sacrificed. C. the interest cost of financing a business loan at the bank. D. There is no real definition for opportunity cost.