When people buy assets simply because they believe the assets will appreciate and can be sold for a profit, it may cause:
A. a recession.
B. unemployment.
C. inflation.
D. an asset-price bubble.
D. an asset-price bubble.
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If a person does not pay all costs associated with a particular resource-using activity, then
A) the external costs of the activity are greater than the private costs of the activity. B) the social costs of the activity are greater than the private costs of the activity. C) the external costs of the activity are greater than the internal costs of the activity. D) the full costs of the activity are the sum of private costs plus internal costs.
Economists study how people make decisions
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, many firms produce many different varieties of the same product.
Answer the following statement true (T) or false (F)
In Figure 5.6, a monopolist would charge which price? 
A. The monopolist would shutdown, so no price would be charged. B. P2 C. P3 D. P4