There are frequently market solutions that the government can use to deal with externalities
a. True
b. False
Indicate whether the statement is true or false
True
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Even though international trade in undertaken voluntarily, a country that engages in trade may not benefit from it
a. True b. False Indicate whether the statement is true or false
Banks act as:
A. an organizer among firms in a specific market. B. a negotiator for buyers. C. intermediaries between borrowers and savers. D. informants to various buyers about prices and contracts.
The crowding-out effect refers to the tendency of expansionary fiscal policy to
A. cause firms to produce above their full capacity. B. cause decreases in planned expenditures in the private sector. C. replace low-skilled labor with higher-skilled labor. D. cause households to save less.
The price elasticity of demand is a measure of
A) the responsiveness of the quantity demanded of a good to a changes in the price of the good. B) the quantity demanded of a good at a given price. C) the demand for a product holding prices constant. D) the horizontal shift in the demand curve when the price of a good changes.