When there is an external cost, the unregulated market
A) overproduces the good or service.
B) underproduces the good or service.
C) reaches the most efficient solution.
D) minimizes public welfare.
A
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To measure the change in the standard of living, it is best to use the growth rate
A) from the Rule of 70. B) of the price level. C) of real GDP per person. D) of real GDP. E) of the population.
Tom, a government employee, has a defined benefit pension.He has worked for his employer for 35 years before retiring at age 65.His final salary was $85,000
Calculate how much of his final preretirement income a standard defined benefit pension plan would replace.
If the world terms of trade equal those of country H, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
a. It increases the reported deficit. b. It reduces the reported deficit. c. It exerts no effect on the reported deficit. d. It increases the deficit during an economic boom but reduces it during a recession.