When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government
B. social costs equal private costs; no government
C. social costs are less than private costs; government
D. social costs are greater than private costs; government
E. none of the above
Answer: C
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When one company is owned by a corporation but is chartered separately from the parent company, this is
A. a subsidiary. B. a clone. C. used for tax evasion. D. illegal.
The supply-of-money curve is almost perfectly inelastic because:
a. as interest rates rise, people will want to be supplied with more loans b. the Fed makes more money available in response to higher interest rates. c. banks generally find loans more profitable than keeping their assets as cash in their vaults or reserve deposits at the Fed, whether interest rates are 4% or 10%. d. the Fed lowers the discount rate as interest rates rise.
The text discusses the projected increases in the claims on the economy by entitlement programs between the mid 1990s and 2035 . It argues that
a. the projected growth of Medicare claims far outstrips that of Social Security b. as a percentage of GDP, both Medicare costs and Social Security costs will fall c. age and health-care demands are related with the majority of claimants being the young d. the rate of growth of Social Security payments will be higher than the rates for either Medicare and Medicaid e. Social Security and Medicare costs will remain at about the same percent of GDP
Which of the following is included in ghana GDP?# randomize
A. the sale of a new car from manufacturer’s inventory.
B. The purchase of watch from Swiss company.
C. The sale of a used car.
D. A newly constructed house.