A positive externality exists and government wants to impose a subsidy in order to bring about an efficient outcome. To accomplish its objective, government must set the subsidy equal to marginal
A. private cost.
B. social benefit.
C. external cost.
D. social cost.
E. external benefit.
Answer: E
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The amount you pay for apps to download to your cell phone is an example of a(n) ________ cost
A) implicit B) opportunity C) explicit D) network
Complete tastes are tastes that make people desire at least some of every good.
Answer the following statement true (T) or false (F)
Fed policies since the 1980s have attempted to
A) overshoot natural real GDP. B) undershoot natural real GDP. C) "stall" the economy whenever natural real GDP is growing too fast. D) A and B. E) none of the above.
Suppose that businesses in Japan reduce their spending on plant and equipment. What will be the effect on spending on plant and equipment by businesses in the United States?
What will be an ideal response?