When the social cost curve is above a product's supply curve,
a. the government has intervened in the market.
b. a negative externality exists in the market.
c. a positive externality exists in the market.
d. the distribution of resources is unfair.
b
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If the number of unemployed workers in an economy is 4 million, and the size of the labor force in the economy is 16 million, the unemployment rate in the economy is:
A) 8 percent. B) 4 percent. C) 30 percent. D) 25 percent.
When new firms enter the perfectly competitive Miami bagel market, the market
A) supply curve shifts leftward. B) supply curve does not change. C) demand curve shifts rightward. D) supply curve shifts rightward. E) demand curve shifts leftward.
In the monetary small open-economy model, a fixed exchange rate insulates the domestic price level from
A) both real and nominal shocks from abroad. B) real shocks from abroad, but not nominal shocks from abroad. C) nominal shocks from abroad, but not from real shocks from abroad. D) neither real nor nominal shocks from abroad.
Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output
a. True b. False