When a particular negative externality affects a very large number of people, it is likely that
a. government will not find it worthwhile to impose a corrective tax.
b. private solutions to the problem will dominate any attempt by government to alleviate the problem.
c. the solution to externalities suggested by the Coase theorem will work very well.
d. the solution to externalities suggested by the Coase theorem will not work.
d
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Entry by competitive firms decreases the market price, while exit by competitive firms increases the market price. Explain why firms enter or exit an industry and why these price changes occur
What will be an ideal response?
Refer to the above figure. Which panel shows a possible short-run equilibrium for monopolistic competition, but is not also a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Which of the following is a driving force underlying economic growth?
a. trade restrictions that protect domestic businesses from competition with foreign producers b. regulations that require businesses to obtain permission from the government before starting a new business c. tax increases that expand the revenues of the government d. entrepreneurial discovery and production of improved products