Some government policies provide incentives for private decision makers to choose to solve the problem of externalities on their own. What term do we use to describe such policies?
We use the term market-based policies to describe such policies.
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In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation. B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero. C) new firms enter the industry so that output decreases and the economic profit increases. D) new firms enter the industry so that output increases and the economic profit increases.
When the MPP of labor is zero, ceteris paribus,
A. Additional units of labor must be employed because other factors of production are being wasted. B. No further increases in output can be achieved by using additional units of labor. C. Employment can be increased only by offering a higher wage rate. D. MRP is at a maximum.
Currently, the national debt is approximately:
A. 10 percent of GDP. B. 60 percent of GDP. C. 105 percent of GDP. D. 120 percent of GDP.
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If aM is negative, then good y is:
A. a substitute. B. a normal good. C. a complement. D. an inferior good.