Markets tend to overallocate resources to the production of a good when
A. there are public goods produced.
B. equilibrium occurs.
C. there are positive externalities.
D. there are negative externalities.
Answer: D
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If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate. B) more likely to reduce the natural rate of unemployment. C) less likely to affect the unemployment rate. D) less likely to result in a vertical short-run Phillips curve.
Describe the holdout problem with emphasis on how it might lead to resource being allocated inefficiently. Give three private ways to possibly overcome the holdout problem
What will be an ideal response?
A national chain of bookstores has initiated a frequent buyer program. If you buy a frequent buyer card for $10, you are entitled to a 10 percent discount on all purchases for 1 year. This practice is an example of:
A) peak-load pricing. B) intertemporal price discrimination. C) two-part tariff. D) bundling. E) Both A and B are correct.
The Nobel Prize winner William Shockley feels strongly that blacks do not have a hereditary racial inferiority in intellectual performance
Indicate whether the statement is true or false