When no one owns a particular resource
A) property rights are clearly defined.
B) individuals have legal recourse for any damages caused to their resource.
C) no one has any incentive to consider externality spillovers associated with that resource.
D) positive externalities will arise.
C
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Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD3?
A. A decrease in consumer wealth B. An increase in expected returns on investment C. A decrease in real interest rates D. An increase in productivity
Firms have the option of maximizing sales revenue or maximizing profits. If a firm chooses to maximize sales, then it will produce
a. more output and charge a lower price. b. the same output and charge a lower price. c. less output and charge a higher price. d. less output and charge a lower price.
Suppose government expenditures on goods and services and net taxes both decrease, and expenditures fall by more than net taxes. The effects of these changes on the budget deficit cause
a. both the equilibrium interest rate and the equilibrium quantity of loanable funds to fall. b. both the equilibrium interest rate and the equilibrium quantity of loanable funds to rise. c. the equilibrium interest rate to rise and the equilibrium quantity of loanable funds to fall. d. the equilibrium interest rate to fall and the equilibrium quantity of loanable funds to rise.
Since 1970, the U.S. trade balance has:
A. been close to zero in almost every year. B. been in deficit in almost every year. C. been in surplus in almost every year. D. fluctuated between deficit and surplus frequently.