When products that create positive externalities are produced, at the market equilibrium output, the social benefit generated by consuming the product exceeds the private benefit
Indicate whether the statement is true or false
TRUE
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If the saving rate decreases, break-even investment will be ________ than investment, and the capital-labor ratio will ________
A) greater; increases B) greater; decreases C) less; increases D) less; decreases
Which of the following makes long-term low-interest loans to LDCs?
a. International Monetary Fund (IMF) b. Agency for International Development (AID) c. World Bank d. New International Economic Order (NIEO)
If Americans decide to buy more South African diamonds, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars
b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.
Suppose Berylia's marginal propensity to consume is 0.8 . A recessionary gap of $200 exists in this economy. In order to close this gap, the government should increase its aggregate expenditures by _____
a. $40 b. $100 c. $200 d. $80