If there are no externalities, a competitive market achieves economic efficiency. If there is a negative externality, economic efficiency will not be achieved because
A) too little of the good will be produced.
B) too much of the good will be produced.
C) a deadweight loss will occur that is equal to the area under the demand curve for the good.
D) economic surplus is maximized.
Answer: B
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Which of the following is NOT included in the M1 measure of money?
A) currency held outside banks B) currency held in bank vaults C) checking deposits at commercial banks D) checking deposits at credit unions
When the government sets a maximum price that can be charged for a good or service, it creates
A) a price support. B) a price floor. C) a white market. D) a price ceiling.
Macroeconomics focuses on:
a. Total output and the general level of prices in the economy b. Studies of how individual markets and industries are organized c. How a business determines how much of a product to produce d. The individual units that make up the whole of the economy
What the economist calls opportunity costs are built into
What will be an ideal response?