In the case of a negative externality,
A) marginal external costs are greater than marginal private costs.
B) marginal external costs are less than marginal private costs.
C) marginal external benefits are greater than marginal private benefits.
D) marginal external benefits are equal to marginal private costs.
E) none of the above
D
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Technological advances lead to ________
A) a shift of the short run AS curve up B) a shift of the long run AS curve to the left C) an upward movement along the long run AS curve D) all of the above E) none of the above
Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?
Monetary policy administered by the Fed is the principal method of softening the effects of the business cycle because _____.
(A) The outside lag for fiscal policy is shorter than the outside lag for monetary policy. (B) There are more political complications with determining and implementing fiscal policy. (C) Fiscal policy is not effective at easing the fluctuations of the economy. (D) Monetary policy has the shortest total delay in implementing and achieving a planned outcome.
What are market failures? Discuss examples of market failures. What can government do to improve the results of market failures?
What will be an ideal response?