When positive externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low.
B) market price which is too low and a market quantity which is too high.
C) market price which is too high and a market quantity which is too low.
D) market price which is too high and a market quantity which is too high.
C
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An estimated regression coefficient is 10 with a standard error of 5. The null hypothesis is that the partial regression coefficient equals zero. What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?
A) 1 B) 2 C) 0.5 D) 5
Planning a vacation at a beach resort, Joey found that hotel prices jumped during the peak summer season, with Fourth of July week being the most expensive of all. Which of the following best explains the seasonal price increase?
a. As demand falls in the summer, the hotel raises room rates to stay profitable. b. The resort raises prices to reduce occupancy during the busiest holiday periods. c. Higher demand drives up prices in the summer as more people take vacations. d. Resorts raise prices in the summer to make people feel their vacation is exclusive.
As income increases during the recovery from a recession, automatic stabilizers will:
A. reduce taxes on high-income individuals and raise taxes on the poor, increasing economic inequality. B. increase taxes and decrease government spending, slowing the recovery. C. increase taxes and increase government spending, increasing the overall size of the government. D. reduce taxes and increase government spending, accelerating the recovery.
The MPC can be defined as that fraction of a:
A. change in income that is not spent. B. change in income that is spent. C. given total income that is not consumed. D. given total income that is consumed.