The existence of negative externalities:
A. causes the market to work more effectively.
B. prevents the market from working efficiently.
C. necessarily means that government must intervene in the marketplace.
D. prevents government from intervening in the marketplace.
Answer: B
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Suppose commodity demand is stronger than expected, and money demand is stable
If the Fed is targeting the interest rate, it notices the rate is ________ its target, and action to correct this, shifting the LM curve to the ________, causes GDP to ________ natural GDP. A) below, right, fall back toward B) below, right, rise further toward C) below, left, rise further from D) above, left, fall back from E) above, right, rise further from
If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 40
B) 80
C) 55
D) 60
If net taxes decrease by $500 billion, both household disposable income and consumption spending will increase by $500 billion
a. True b. False
A firm's accounting profit is also its
A) economic profit. B) income statement. C) net income. D) statement of liabilities.