Answer the following questions true (T) or false (F)
1. Occupational licensing is an example of an entry barrier that improves a country's standard of living.
2. The barrier to entry that allowed Alcoa to make persistent economic profits was ownership of an essential input.
3. If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits.
1. FALSE
2. TRUE
3. TRUE
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If an economy is stuck in a "bad" equilibrium in the coordination failure model
A) the government should intervene by spending more. B) the government should intervene by spending less. C) the government should promote optimism. D) there is nothing that can be done.
What good or service creates positive externalities?
a. Vaccination against measles b. Vegan cookies c. Organic sweaters d. Eyesight correction surgery
Chronic trade deficits lead to a growing public debt
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct?
a. Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced. b. Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced. c. Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced. d. Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.