In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum.
A. high; low
B. low; low
C. high; high
D. low; high
Answer: B
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Vertical contracts can also be seen as
a. An increase in coordination between firms producing complementary goods b. An increase in competition among firms producing complementary goods c. An increase in coordination between firms producing substitute goods d. An increase in competition between firms producing substitute goods
The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately
a. 67%. b. 80%. c. 16%. d. 13%.
Contrast the effects of a rising price level versus a falling price level on consumption and investment.
What will be an ideal response?
Referring to Figure 18.3, the effect of a decrease in Japanese interest rates is represented by a movement from point:
A. b to a. B. a to b. C. b to c. D. a to d.