When a collective action problem exists, the government often has the ability to direct behaviors in ways that make society better off
Indicate whether the statement is true or false
TRUE
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Production efficiency means that
A) scarcity is no longer a problem. B) producing more of one good is possible only if the production of some other good is decreased. C) as few resources as possible are being used in production. D) producing another unit of the good has no opportunity cost.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
A good that has qualities that are easy for a consumer to assess in advance of a purchase is called
A. a credence good. B. a persuasive good. C. an experience good. D. a search good.
In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?
A) The demand curve will shift to the left and became more elastic. B) The demand curve will shift to the left and became less elastic. C) The demand curve will shift to the right and became more elastic. D) The demand curve will shift to the right and became less elastic.