To determine the optimal level of output in a market with negative externalities, a benevolent social planner would look for the level of output at which private cost equals private value
a. True
b. False
Indicate whether the statement is true or false
False
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If the economy is in a recession,
A. The economy suffers from structural unemployment, which can be alleviated by debt refinancing. B. Larger deficits will decrease the national debt. C. It is operating inside the production possibilities curve, and the opportunity cost of deficit spending is zero. D. Deficit spending will not increase the size of the debt because interest rates will be falling.
In Exhibit 1, what is the consumer surplus depicted when the quantity is three units?
a. $4
b. $2
c. $1
d. $0
The underlying principles behind the slashing of marginal tax rates in 1964 were Monetarist
a. True b. False
Economics is the study of the allocation of scarce resources and scarce time, and the ways in which people utilize those resources or that time
a. True b. False Indicate whether the statement is true or false