Since externalities tend to keep markets from reaching a socially optimal equilibrium, government action
a. is always needed because private solutions can never be attained.
b. is needed when private solutions fail to arise.
c. will be needed only to correct for positive externalities.
d. will be needed only to correct for negative externalities.
b
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
The abrupt end of long distance cattle drives in 1885 was primarily due to
a. the development of railroad cars that could haul cattle. b. organized efforts by northern cattlemen to reduce overstocking of cattle on the northern ranges. c. the advent of barbed wire fences. d. a reduced demand for beef in both domestic and export markets.
Suppose that the "Millennial" generation values leisure more than past generations. We can expect a decrease in the labor supply as the Millennials enter their prime working ages
a. True b. False Indicate whether the statement is true or false
Tom buys a futures contract for U.S. Treasury bonds and on the settlement date the interest rate on U.S. Treasury bonds is lower than Tom expected. Tom will have:
A. lost money on his long position. B. gained money on his long position. C. gained money on his short position. D. lost money on his short position.