If an activity has an external benefit, such as education, a tax on that activity can lead to the efficient level of output being produced
Indicate whether the statement is true or false
FALSE
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Complete price stability would be the result of
A) inflation. B) an inflation rate of zero. C) deflation. D) hyperinflation.
Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
Refer to Figure 3-5. At a price of $10, the quantity sold
A) is 2 units. B) is 4 units. C) is 6 units. D) is 8 units.
Patent laws promote technical progress in all of the following ways except one. Which is the exception?
a. They allow other firms to copy successful products as soon as they are marketed. b. They prevent duplication of inventions. c. They provide a stimulus to innovation. d. They provide the inventor with a temporary monopoly. e. They increase a firm's incentive to incur the up-front costs of developing new products.