Generally, positive externalities result in
A. too much of a good being produced.
B. the socially optimal output of a good being produced.
C. too little of a good being produced.
D. either a or c
E. any of the above
Answer: C
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A surplus in the labor market indicates that the
A) real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor. B) quantity of labor demanded is less than the quantity of labor supplied. C) real wage rate has to rise before the labor market will reach equilibrium. D) workers are not looking for work because they enjoy their leisure time. E) real wage rate is less than the equilibrium wage rate.
An externality
A) may be positive or negative. B) means a rapidly rising cost borne by consumers. C) is the cost of producing a good outside the United States. D) is the indirect cost, the overhead, of producing a product.
If exports and imports both fell, but exports fell less than imports, a. AD would decrease
b. AD would increase. c. AD would be unaffected. d. AD could either increase or decrease.
How are the decisions of government policy makers, such as the Federal Reserve, related to risk and an individual investor's portfolio?
What will be an ideal response?