When the social costs exceed the private costs, economists state that there is
A) a positive externality.
B) an underproduction of output.
C) a negative externality.
D) social appreciation of resources.
C
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Refer to Figure 22.5 below. Suppose that the initial budget constraint AB is given by the equation G = 150 - c/5, where G is the units of public good and c is consumption. A closed- ended matching grant up to 100 units of public good is proposed. If the slope of line segment AD is -2, write the equation of the new budget constraint after a closed-ended matching grant.
Which of the following is not generally considered to be an ingredient for economic growth?
a. Investment in human capital. b. Political instability. c. High savings rate and investment in capital. d. Growth in technology. e. Investment in infrastructure.
Which index is made up of mainly tech and internet stocks?
A) NYSE. B) Nasdaq. C) S&P 500. D) The Dow Jones.
Other things the same, if the price level falls, domestic interest rates
a. rise, so domestic residents will want to hold more foreign bonds. b. rise, so domestic residents will want to hold fewer foreign bonds. c. fall, so domestic residents will want to hold more foreign bonds. d. fall, so domestic residents will want to hold fewer foreign bonds.