If consumption of education creates an external benefit, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced.
b. the same amount of education must be produced, and the price should be lower.
c. less education must be produced, and the price should be higher.
d. less education must be produced, and the price should be lower.
e. less education must be produced at the same price.
A
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The daily vegetable market is an example of an oligopoly market structure
a. True b. False Indicate whether the statement is true or false
Par value is the
A. Rate of interest to be paid on a bond. B. Increase in the market value of an asset. C. Rate of return on a share of stock. D. Face value of a bond; the amount to be repaid when the bond is due.
An event that directly affects firms' costs of production and thus the prices they charge is called
a. a Phillips contraction. b. an inflationary spiral. c. a demand shock. d. a supply shock.
What do economists call something that encourages an action by increasing its benefits or reducing its costs?
b. a market externality a. a positive incentive c. a rational choice d. an economic good