If the social cost of producing a good exceeds the private cost,
A) a negative externality exists.
B) no externalities exist.
C) a positive externality exists.
D) the market is efficient.
A
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In general, pollution is economically inefficient because _____
a. people do not like breathing bad air b. it is a byproduct of a market exchange c. producers are only pursuing their own self-interests d. producers do not have to internalize the opportunity cost of clean air
Refer to the above table. Suppose Buyer 2 leaves the market. What is the new market quantity of DVDs demanded at a price of $10?
A) 33 B) 25 C) 22 D) 8
Expansionary monetary policy:
A. decreases the interest rate and increases the price level. B. decreases the interest rate and decreases the price level. C. increases the interest rate and increases the price level. D. increases the interest rate and decreases the price level.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. e. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).