The No-Good Company produces goods that provide damages to society-at-large. If consumers of No-Good's products fail to take external benefits into account
A. the demand curve will be too far to the right.
B. the supply curve will be too far to the left.
C. the demand curve will be too far to the left.
D. the supply curve will be too far to the right.
Answer: D
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Discounting involves dividing next-period income by ________
A) one plus the real rate of interest B) the nominal rate of interest C) current income D) the real rate of interest
Even countries that depend primarily on market forces to resolve the basic economic questions will usually rely on the collective decision-making process to
a. determine the prices of goods and resources. b. allocate goods that are essential to life. c. determine the distribution of income among citizens. d. define and enforce private-property rights and designate the acceptable forms of competitive economic behavior.
Suppose the cost of medical care rose 200 percent from 1990 to 2010, and average prices for the economy rose 150 percent. Relative to others, people who purchased medical care experienced a:
A. Lower real income as a result of the price effect. B. Higher real income as a result of the price effect. C. Lower real income as a result of the wealth effect. D. Higher real income as a result of the wealth effect.
If Zander's saving is of the form [S = -150 + 0.5Y], his consumption equals his income at an income level of
A. 150. B. 225. C. 300. D. 1,500.