"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are no positive or negative externalities in the market.
B) is true only if there are positive externalities in production in the market.
C) is true in theory, but economic efficiency cannot be achieved in a real market.
D) is true only if there are no negative externalities in the market.
A
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A higher saving rate will promote capital deepening
Indicate whether the statement is true or false
In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington
Which of the figures above best illustrates the effect of this new law? A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above because a prohibition cannot be illustrated using demand and supply figures.
During a business cycle expansion, total production ________ and total employment ________
A) decreases; increases B) increases; increases C) increases; decreases D) decreases; decreases
Assume that there is a $20 billion increase in government purchases. If MPC = 0.8, the sum of the indirect effect on aggregate demand through induced additional consumption purchases is equal to: a. $16 billion
b. $20 billion. c. $80 billion. d. $100 billion.