In graphical form, the presence of an external benefit that is ignored by consumers can be shown as
A) a market demand curve to the left of the market demand curve for which the consumers take the external benefit into account.
B) a market demand curve to the right of the market demand curve for which the consumers take the external benefit into account.
C) a market demand curve the same as the market demand curve for which the consumers take the external benefit into account.
D) the absence of a market demand curve.
A
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Consider a game in which all outcomes give the players the same total payoff. Explain why every outcome in such a game will be Pareto optimal.
What will be an ideal response?
A decrease in the price of resources will cause the aggregate supply curve to
a. shift outward. b. shift inward. c. become flatter. d. become steeper.
An increase in the interest rate could have been caused by
a. a fall in the price level causing the money-demand curve to shift leftward. b. a fall in the price level causing the money-demand curve to shift rightward. c. a rise in the price level causing the money-demand curve to shift leftward. d. a rise in the price level causing the money-demand curve to shift rightward.
When flat screen televisions were first introduced in 1997 they were priced at $15,000. If the CPI in 1997 was 160 and the CPI in 2019 is 265, then this price is equivalent to approximately ______________________in 2019 dollars. If the average flat screen TV sells for $550 in 2019, the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual pricein 2019 price is __________
a. $15,469; -96.4 percent b. $19,887; -95.6 percent c. $24,844; -97.7 percent d. $154; 3.6 percent e. $367; 8.3 percent