When private benefits are less than social benefits, it means that:
A. no externality of any kind is present in the market.
B. positive externalities are present in the market.
C. negative externalities are not present in the market.
D. positive externalities are not present in the market.
Answer: B
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Explain why a monopoly or a perfectly competitive firm does not consider a rival firm's behavior, but an oligopoly and a monopolistically competitive firm do
What will be an ideal response?
An important and often ignored opportunity cost is the: a. cost of accounting services
b. cost of missed market opportunities when funds are invested in a firm. c. cost of interest paid to bondholders by the firm. d. cost of utilities used by the firm.
Shift to the left or right for supply: number of sellers decreases
What will be an ideal response?