If the market equilibrium quantity is greater than the socially optimal quantity, one can infer that:
A. there is a positive externality associated with this good.
B. the private demand curve for the activity is below the socially optimal demand.
C. there is a negative externality associated with this good.
D. the private supply curve for the activity is to the left of the socially optimal supply curve.
Answer: C
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
The above table shows some national income accounting data for a nation. In this nation, gross domestic product is equal to ________ billion
A) $2,000 B) $2,300 C) $2,500 D) $2,800
Which of the following allows workers to focus on the types of production where they have an advantage?
a. Deindustrialization b. Diseconomies of scale c. Scarcity d. Specialization
Conspicuous consumption
A. was a phrase coined by Karl Marx. B. was a phrase coined by Thorstein Veblen. C. was a phrase coined by Milton Friedman. D. was a phrase coined by Adam Smith.