With positive externalities, _____
a. the market equilibrium occurs at a greater quantity than the socially optimal output
b. net social welfare is maximized
c. the social benefit curve lies above the private benefit curve
d. there is no deadweight loss
c
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The "East Asian Miracle" of the "Four Tigers" in the 1960s was replicated by
A) developing countries around the world. B) other East Asian countries. C) Sub Sahara African countries. D) Industrialized countries. E) Eastern European countries.
When the central bank announces the inflation rate that it will achieve over the next one to four years, it is following a strategy known as
A) money targeting. B) inflation targeting. C) a currency board. D) real business cycle targeting.
The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline. B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase. C) the present value of a fixed sum decreases as the time until it is to be paid increases. D) all of the above E) both A and C.
Which of the following groups does not have an interest in restricting free trade?
A. People who buy the imported product. B. Producers in import-competing markets. C. Communities where workers in import-competing markets live. D. Workers in import-competing markets.