In an ideal free unregulated market
a. supply curves reflect all negative externalities.
b. external benefits are abundant.
c. all individual and social needs are met by the market.
d. optimal quantities of all goods and services are produced.
d
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At an interest rate of 5 percent, the present value of $1,000 to be received two years from today is
A) less than $875. B) between $875 and $925. C) between $925 and $975. D) more than $975.
The core rate of inflation is a measure of the relative price changes that excludes changes in energy and food prices
Indicate whether the statement is true or false
Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________
A) monetary aggregates do not provide clear or consistent signals to guide policymakers B) open market operations affect interest rates more directly than they affect monetary aggregates C) according to the Fisher effect, the interest rate is a key determinant of the inflation rate D) all of the above E) none of the above
A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level
a. True b. False Indicate whether the statement is true or false