Which statement about a market demand curve is true?

a. A market demand curve fails to reflect positive externalities.
b. A market demand curve reflects both positive and negative externalities.
c. A market demand curve reflects social benefits but not private benefits.
d. A market demand curve fails to reflect private benefits.


a. A market demand curve fails to reflect positive externalities.

Economics

You might also like to view...

As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies, the money multiplier ________ as a direct result of the ________

A) fell from about 9 to about 4; low risk experienced by banks because of the FDIC increasing their default coverage amounts B) decreased drastically; consistent decrease in banks' desired reserve ratios as they took on less risk C) rose from about 4 to about 9; surge in banks' desired reserve ratios as they took on less risk D) rose drastically; consistent decrease in banks' desired reserve ratios as they took on less risk E) fell from about 9 to about 4; surge in banks' desired reserve ratios as they took on less risk

Economics

One of the problems with excessive debt is that

A) it worsens the central government's budget position by adding large debt service payments to other budget items. B) it reduces the quantity of resources available to invest in economic development. C) if debt service is substantial, schools, health clinics, roads, ports, other infrastructure, and social needs are less likely to be addressed. D) it can intensify and spread a crisis. E) All of the above.

Economics

Most of the countries in the world suffered long and deep losses of output and employment between 1930 and 1935, which in turn meant fewer purchases of U.S. goods and services. Which of the following indicates the appropriate change in the U.S. economy?

A. Aggregate demand shifted to the left B. Aggregate demand shifted to the right C. The economy moved up along the aggregate demand curve D. The economy moved down along the aggregate demand curve

Economics

In the event of a recession, the fiscal policy measures favored by most liberals would involve ________.

Fill in the blank(s) with the appropriate word(s).

Economics