Costs borne solely by the individuals who incur them are
A) private costs.
B) social costs.
C) internality.
D) common property.
Answer: A
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In an economy where planned aggregate spending is given by PAE = 3,000 + .75Y ? 10,000r, the central bank is currently setting the interest rate at 0.05 (5 percent). If potential output equals 10,800, the central bank must ________ the interest rate to close the ________ gap.
A. raise; recessionary B. raise; expansionary C. lower; expansionary D. lower; recessionary
Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits
A) equitably B) rationally C) emotionally D) selfishly
A very large number of small sellers who sell identical products imply
A) the inability of one seller to influence price. B) a multitude of vastly different selling prices. C) a downward sloping demand curve for each seller's product. D) chaos in the market.
Which of the following is not a goal of government programs?
a. to enforce private property rights b. to prohibit natural monopolies c. to reduce pollution d. to transfer money from higher-income households to the poorest households e. to maintain price stability