When there is an external benefit, the unregulated market
A. overproduces the good or service.
B. reaches the most efficient solution.
C. maximizes public welfare.
D. underproduces the good or service.
Answer: D
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The high point in the business cycle is referred to as the
A) turning point. B) peak. C) boom. D) trough.
At any given moment there is one exchange rate: a. for all the world's currencies
b. for currencies in the free world. c. between every pair of currencies. d. established by the Federal Reserve System.
If hiring one more worker causes the average product of labor to fall, then:
A. the marginal product of labor is less than the average product of labor. B. the marginal product of labor is equal to the average product of labor. C. the marginal product of labor is greater than the average product of labor. D. the marginal product of labor is negative.
If an increase in income leads to a decrease in the demand for ground beef, then ground beef is a(n):
A. complementary good. B. substitute good. C. inferior good. D. normal good.