If social returns to the production of a good are greater than private returns, then we can conclude that relative to the social optimum, the good will be
A) overproduced and underpriced.
B) underproduced and overpriced.
C) overproduced and overpriced.
D) underproduced and underpriced.
B
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The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash. C) the reserve ratio increases. D) banks hold more excess reserves.
If points A and B are two locations on a country's production possibility frontier, then
A) the country could produce either of the two bundles. B) consumers are indifferent between the two bundles. C) producers are indifferent between the two bundles. D) at any point in time, the country could produce both. E) both bundles must have the same relative cost.
Which of the following is a component of aggregate demand?
A. Consumption B. Net exports C. Investment D. All of these are components of aggregate demand.
Individual income taxes in the U.S.
a. began during the Revolution. b. affect only the richest 10% of people. c. are an insignificant source of revenue. d. mostly began in 1913.