When a firm ignores external costs:
A. it fails to maximize its profits.
B. it is willing to produce too little of the good at the given price.
C. the good is priced too cheaply in equilibrium.
D. it also ignores external benefits.
C. the good is priced too cheaply in equilibrium.
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Thrift institutions
A) include commercial banks and investment firms. B) include credit unions but not savings and loan associations. C) do not offer transaction deposits. D) receive most of their funds from the public's savings deposits.
Hiring a sports celebrity to advertise a car dealership is a way of
A. screening those who aren’t willing to pay as much for a car. B. statistically discriminates potential buyers who like sports. C. signaling the quality of the cars because it is costly to hire that celebrity. D. a waste of the dealership’s money because celebrities aren’t car experts.
Economists are still puzzled why growth rates in the United States fell from 1973 to 1995
a. True b. False Indicate whether the statement is true or false
Suppliers will supply more of a good when the price of that good rises because the opportunity cost of not producing that good has risen.
Answer the following statement true (T) or false (F)