Suppose a business firm dumps its used car batteries into a river.
A. The company's actions constitute an external cost.
B. The company's actions constitute an external benefit.
C. The company's actions would be an example of the market system efficiently allocating resources.
D. The company's actions damage no one but itself.
A. The company's actions constitute an external cost.
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Lower real income ________ the demand for money and a lower price level ________ the demand for money.
A. decreases; decreases B. increases; increases C. increases; does not change D. increases; decreases
If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.
An increase in the equilibrium price and the equilibrium quantity would be caused by an increase in supply
a. True b. False Indicate whether the statement is true or false
Hyperinflation is generally defined as inflation that exceeds 50 percent per month
a. True b. False Indicate whether the statement is true or false