If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:
A. the allocation of resources will be socially optimal.
B. the market equilibrium will not be efficient.
C. the market equilibrium will be socially optimal.
D. the market will not be in equilibrium.
Answer: B
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Compared to consumption spending, investment historically has tended to be
A) stagnant. B) more variable. C) more stable. D) greater.
Deforestation is occurring in tropical areas because
a. long-run economic considerations outweigh short-run considerations b. global economic considerations outweigh domestic considerations c. tropical soil is good for growing farm crops d. the value of jobs created by deforestation exceeds the cost to society e. there is no property right to the earth's climate
An economic boom in China is likely to lead to a(n):
a. decrease in U.S. exports and U.S. aggregate demand. b. increase in U.S. exports and U.S. aggregate demand. c. decrease in U.S. imports and U.S. aggregate demand. d. increase in U.S. imports and U.S. aggregate demand.
The Asian tigers have experienced rapid economic growth in recent times. Hence, these countries are sometimes referred to as:
a. first-world countries. b. newly industrialized countries. c. the globalization limelight. d. second-world countries. e. the G-8 nations.