If the demand curve fails to capture all of the benefits of consumption, then the:
A. government needs to impose regulations that require more consumption.
B. equilibrium price will be efficient but the equilibrium quantity will be inefficiently large.
C. equilibrium price will be inefficiently high.
D. equilibrium price will be inefficiently low.
Answer: D
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The single best indicator of the degree of economic inequality in a country is the
a. top/bottom ratio b. Gini coefficient c. poverty rate d. Kuznets curve e. bell curve
Vertical integration often aims to
a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Avoid paying higher taxes c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
Which of the following is a determinant of productivity?
a. human capital per worker b. physical capital per worker c. natural resources per worker d. All of the above are correct.
To bypass capital controls, people who need foreign currency sometimes resort to:
a. forward foreign exchange markets. b. stock markets. c. black markets. d. farmers markets.