In a competitive market, if the production process involves an external benefit, the market will
a. produce the economically efficient outcome.
b. result in a market price that is higher than the efficient one.
c. result in a market price that is lower than the efficient one.
d. result in too much of the good being produced compared to the ideal efficient outcome.
C
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A nation's producers can compete effectively with imports from other nations if it has
a. high wages b. low wages c. low labor cost per unit of output d. less specialization e. low labor productivity
It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Acme has received applications from 10 graduates of State U. Five included transcripts, all of which indicated GPAs of 3.0 or better. Acme will most likely infer that the five graduates who did not include transcripts:
A. did not carefully read the application instructions. B. had GPAs of less than 3.0. C. had GPAs evenly distributed between 2.0 and 4.0. D. had GPAs of more than 3.0.
Answer the following statement true (T) or false (F)
1) Demand is the active and supply the passive determinant of land rent. 2) Different rents on land reflect differences in the marginal revenue product of land. 3) The free-land era of U.S. history reflected a situation in which the quantity of land available at a zero price exceeded the quantity of land demanded. 4) Rent performs an incentive function, but no rationing function. 5) The interest rate is the price paid for the use of money.
A product that was produced in 2009 and not sold until 2010 is counted as part of GDP in 2010.
Answer the following statement true (T) or false (F)