When social costs for using a scarce resource are included, then there is
A) a decrease in the production of the good.
B) a negative externality.
C) a decrease in the price of the good.
D) a positive externality.
A
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What will be an ideal response?
According to Keynes, the speculative demand for money pertains to money held in anticipation of a(n)
a. increase in bond prices. b. decrease in bond prices. c. rise in interest rates. d. fall in interest rates. e. both b and c
A perfectly competitive firm is operating where its total revenue equals its total cost. In the short run, if market demand increases, this firm will have an economic
a. loss and reduce output b. loss while expanding output c. profit and reduce output d. profit while expanding output e. profit, but will not change output
Aggregate demand:
A. Refers to the collective behavior of all buyers. B. Reflects the total quantity of output produced. C. Increases when the price level increases. D. Is influenced directly by aggregate supply.