In a market with an external cost, government action
A) cannot decrease the amount of the deadweight loss from the external cost.
B) can sometimes help to achieve an efficient outcome.
C) cannot alter firms' cost curves.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
B
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The term "satisficing" for decision-making behavior by many firms was coined by
a. Milton Friedman. b. Adam Smith. c. Herbert Simon. d. Alan Greenspan.
When all relevant information is used to forecast inflation, the resulting forecast is called
A) a rational expectation.
B) a natural expectation.
C) an expected forecast.
D) an expansionary expectation.
E) the expected expectation.
When do consumers bear the larger share of a tax?
What will be an ideal response?
A nation's gross domestic product (GDP):
A. can be found by summing C + I g + G + X n . B. is the dollar value of the total output produced by its citizens, regardless of where they are living. C. can be found by summing C + S + G + X n . D. is always some amount less than its NDP.