When a person does NOT have to pay the full costs for using a scarce resource, then
A) the use of the resource is not affected since society pays for the resource.
B) more of the resource will be used.
C) the internal costs of using the resource are too high.
D) the social costs of the resource are less than they would be if the "correct" amount of the resource were being used.
Answer: B
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In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of an increase in real GDP?
A) The demand for money curve would shift rightward to MD2. B) The demand for money curve would shift leftward to MD0. C) There would be a movement upward along the demand for money curve MD1. D) There would be a movement downward along the demand for money curve MD1.
Pam sees that the price of bananas has risen in the grocery store. All else equal, she decides to buy more tangerines than she normally purchases. From the information given, you might conclude that:
A. tangerines and bananas are substitutes. B. bananas are a luxury good. C. tangerines are an inferior good. D. tangerines and bananas are complements.
The term or phrase most likely to indicate a normative statement is
A) "ceteris paribus." B) "factual." or "what is" statement. C) "holding other things constant." D) "should" or "ought to."
During 2016, Yolanda's assets equal $200,000 and her net worth is $50,000. Yolanda's liabilities are
A. $50,000. B. $150,000. C. $200,000. D. $250,000.