In any case where there is a positive externality, forming a government agency to solve the problem rarely results in an efficient outcome.
Answer the following statement true (T) or false (F)
False
You might also like to view...
If a 10% increase in the price of one good, A, results in an increase of 5% in the quantity demanded of another good, B, then it can be concluded that A and B are
A. complementary goods. B. substitute goods. C. secondary goods. D. independent goods.
Suppose a bond sells for $2,000 and pays $200 per year in interest. What will happen to the current interest rate if the price of the bond changes to $1,800?
a. It decreases by 10 percentage points. b. It increases by 10 percentage points. c. It remains unchanged. d. It increases by 1 percentage point. e. It decreases by 1 percentage point.
If firms pay employees an efficiency wage: a. absenteeism would be expected to decrease. b. turnover would be expected to increase
c. training costs would likely increase. d. more shirking on the job is likely to occur.
If the government raises government expenditures, then in the short run prices
a. rise and unemployment falls. b. fall and unemployment rises. c. and unemployment rise. d. and unemployment fall.