In case of positive externalities, the market equilibrium output is greater than the socially optimal output
a. True
b. False
Indicate whether the statement is true or false
False
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During an inflationary period with full employment or near-full employment,
a. a progressive income tax structure will worsen inflation. b. unemployment taxes paid by workers will be low. c. total unemployment benefits will be maximized. d. lower disbursements for unemployment compensation will moderate inflation.
Which of the following is most likely to encourage economic growth?
a. stable private property rights b. an extensive welfare system c. frequent military take-overs of the government d. a shrinking labor force e. a fixed capital stock
A competitive capital market is important to society because it directs resources toward projects that
A) can be completed quickly. B) are valued more highly than their cost. C) have an outcome that is known with certainty. D) reduce the value of the resources employed.
Suppose there are two economies, Alpha and Beta, which have the same production possibilities curves. If Beta devotes more resources to produce capital goods than consumer goods as compared to Alpha, then in the future:
A. Alpha will experience greater economic growth than Beta B. Beta will experience greater economic growth than Alpha C. Alpha will not be able to achieve full employment or productive efficiency D. Beta will not be able to achieve full employment or productive efficiency