When all the costs and benefits of a transaction are borne by the participants of that transaction, _____
a. the market outcome will be inefficient
b. the private costs and social costs are identical
c. negative externalities exist
d. positive externalities exist
e. the free rider problem arises
b
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If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then
A) the equilibrium price definitely rises. B) the equilibrium price definitely falls. C) the equilibrium price definitely remains the same. D) the equilibrium quantity definitely increases. E) More information is needed to determine the effect on the equilibrium price.
For a firm that can effectively price discriminate, who will be charged a lower price?
A) buyers that are members of the smallest market segment B) customers who have an elastic demand for the product C) buyers that are members of the largest market segment D) customers who have an inelastic demand for the product
An appreciation of the Japanese yen relative to the U.S. dollar will
a. increase aggregate demand in the United States. b. increase aggregate supply in the United States. c. increase aggregate demand in Japan. d. decrease aggregate supply in Japan.
Refer to the graph shown. 
The Lorenz curve showing the most income inequality is
A. A. B. B. C. C. D. D.