The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis
Indicate whether the statement is true or false
False. If the price change affects other markets, the partial-equilibrium analysis will be different than the general-equilibrium. However, the results may be smaller or larger under either analysis.
You might also like to view...
The damage function method
a. is a behavioral linkage approach to measuring environmental benefits b. uses a technical relationship between an environmental resource and a user of that resource to estimate benefits c. uses the same technique as the contingent valuation approach d. is capable of measuring all aspects of incremental benefits simultaneously
Firms are much more likely to provide non-excludable public goods than excludable public goods. ?
Answer the following statement true (T) or false (F)
Using the information in the table above, calculate the employment-to-population ratio
A) 75 percent B) 65 percent C) 50 percent D) 23.2 percent
A commercial bank's reserves are:
A. liabilities to both the commercial bank and the Federal Reserve Bank holding them. B. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. C. assets to both the commercial bank and the Federal Reserve Bank holding them. D. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.