If the social value of producing a good is always higher than the private value of producing it, then there is a
a. negative externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
b. negative externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
c. positive externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
d. positive externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
c
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If the exchange rate between the U.S. dollar and the Russian ruble was 0.04 ($0.04 = one ruble), what would be the price in dollars of a bottle of Russian wine selling for 2,000 ruble?
a. $50 b. $80 c. $100 d. $500
Asking people to indicate their economic values in a survey is an example of what type of economic valuation?
a. Travel cost method b. Contingent valuation c. Hedonic pricing d. Production function valuation e. Avoided cost valuation
Compared with constant cost production, if production occurs under increasing cost conditions, it is MORE likely that countries will:
a. completely specialize. b. incompletely specialize. c. not engage in international trade. d. trade with one another.
In the aggregate expenditures model, an increase in government spending causes a(n):
A. upward shift in the aggregate expenditures curve. B. downward shift in the aggregate expenditures curve. C. leftward movement along the aggregate expenditures curve. D. rightward movement along the aggregate expenditures curve.