All solutions to market failures in markets for public goods or common resources:
A. try to force the internalization of externalities.
B. are not perfect, and total surplus cannot be maximized in these markets.
C. need to be accepted by the affected parties to be effective.
D. must be provided by the government.
Answer: A
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The aggregate supply curve reflects the relationship between the price level and
a. aggregate demand b. unemployment c. real GDP d. employment e. aggregate expenditure
If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves
a. are right angles. b. are straight lines. c. slope upward. d. cross one another at certain points.
An index fund
a. holds only stocks and bonds that are indexed to inflation. b. holds all the stocks in a given stock index. c. guarantees a return that follows the index of leading economic indicators. d. typically has a lower return than a managed fund.
Wild animals are likely to be
A) private property. B) endangered species. C) externalities. D) all of the above.