When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private benefits.
B. lower when buyers receive a Pigouvian subsidy for the externality.
C. higher when buyers receive a Pigouvian subsidy for the externality.
D. Any of these statements could be true.
Answer: C
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Excessive dependence on cheaper foreign imports can cause a(n) ________ in certain sectors of the economy
A) leftward shift in the domestic labor demand curve. B) upward movement along the domestic labor demand curve. C) rightward shift in the domestic labor demand curve. D) downward movement along the domestic labor demand curve.
The Federal Reserve reduced the fed funds rate to the 0-0.25 percent range in 2008 in response to the Lehman Brother's catastrophe
a. True b. False Indicate whether the statement is true or false
National income measures:
A. nominal GDP after it has been inflated or deflated for changes in the value of the dollar. B. the after-tax income of resource suppliers. C. the total of all sources of private income plus government revenue from taxes on production and imports. D. the amount of wage, rent, interest, and profits income actually received by households.
Economic profits and losses are TRUE market signals because they
A. convey information about rewards people should anticipate experiencing by shifting resources from one activity to another. B. convey information to public officials about where to encourage people to invest and what skills people should develop. C. cause people to move into careers in both undesirable and desirable industries with equal ease. D. convey information in an asymmetrical fashion.