Positive externalities
a. result in a larger than efficient equilibrium quantity.
b. result in smaller than efficient equilibrium quantity.
c. result in an efficient equilibrium quantity.
d. can be internalized with a corrective tax.
b
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If total spending rises from one year to the next, then
a. the economy must be producing a larger output of goods and services. b. goods and services must be selling at higher prices. c. either the economy must be producing a larger output of goods and services, or goods and services must be selling at higher prices, or both. d. employment or productivity must be rising.
Expected economic profit per unit is equal to:
A. expected price. B. expected average total cost. C. the difference between expected total revenue and expected total cost. D. the difference between expected price and expected average total cost.
If the CPI increases from 110 to 125 for one year, the rate of inflation for that year is
A. 1.13 percent. B. 13.6 percent. C. 15 percent. D. 50 percent.
Refer to the given market-for-money diagrams. If the Federal Reserve increased the stock of money, the:
A. S curve would shift leftward and the equilibrium interest rate would rise.
B. S curve would shift rightward and the equilibrium interest rate would fall.
C. D 3 would shift leftward and the equilibrium interest rate would fall.
D. D 3 curve would shift leftward and the equilibrium interest rate would rise.