If the demand curve fails to capture all of the benefits of consumption, then the:
A. the equilibrium price will be inefficiently high.
B. the equilibrium price will be inefficiently low.
C. equilibrium price will be efficient but the equilibrium quantity will be inefficiently large.
D. government needs to impose regulations that require more consumption.
Answer: B
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Environmental damage
A. can easily be reduced to zero. B. is inevitable where humans exist. C. tends to increase as long as costs outweigh the benefits to the damagers. D. is only a modern-day concern.
In the case of errors-in-variables bias, the precise size and direction of the bias depend on
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One benefit of low inflation is that it _____ the variability of relative price changes. Therefore, resources are _____ likely to be better allocated
Fill in the blank(s) with correct word