When a market is corrected for externalities, it:
A. is equitable.
B. maximizes surplus.
C. makes everyone in society better off.
D. All of these statements are true.
B. maximizes surplus.
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A budget constraint represents the:
A) inequality in the incomes earned by various economic agents. B) aggregate income earned by all the firms in an economy. C) total money income that an agent earns in different time periods. D) goods and services an economic agent can choose given her limited income.
In the short run, costs that arise from resources that cannot vary in quantity are known as ____________, whereas costs from inputs that can vary in quantity are known as ____________
a. fixed costs; variable costs b. explicit costs; implicit costs c. opportunity costs; variable costs d. fixed costs; opportunity costs e. variable costs; fixed costs
Our persistent war on poverty has successfully destroyed the poverty trap
Indicate whether the statement is true or false
In 1968, the government instituted a 26 percent income tax surcharge. In terms of the AS/AD model, this change should have:
A. shifted the AD curve to the right. B. shifted the AD curve to the left. C. made the AD curve steeper. D. made the AD curve flatter.