Suppose a good has an external benefit and no external cost. When a competitive, unregulated market is at its equilibrium, then the
A) marginal private benefit is less than the marginal social benefit.
B) marginal private benefit is greater than the marginal social benefit.
C) marginal private cost is less than the marginal social cost.
D) marginal private cost is greater than the marginal social cost.
A
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Wages are comparatively low in markets where demand for labor is low and supply is high
a. True b. False Indicate whether the statement is true or false
A binding price ceiling causes quantity demanded to be less than quantity supplied
a. True b. False Indicate whether the statement is true or false
Kiana’s country begins offering free college education to its citizens. This will most likely impact its production possibilities curve by ______.
a. causing it to spike b. shifting it outward c. shifting it inward d. causing it to trend downward
Cole was discussing the market for cocoa beans with his friend John Schmidt. Cole said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying
more and more. I think the demand for cocoa beans must be upward sloping." Is Cole right? Briefly explain why or why not. What will be an ideal response?