Without externalities, _____
a. private costs equal social costs
b. private benefits exceed social benefits
c. private costs are greater than social costs
d. private benefits are lesser than social benefits
a
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If a price floor of $23 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer.
B. some surplus is transferred from producer to consumer.
C. all producers are better off.
D. all consumers are better off.
The ______ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price.
a. income effect b. substitution effect c. backward-bending supply curve d. preferences effect
Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly. B. they hold too few international reserves. C. they hold too many international reserves. D. the IMF forces them to adopt policies that are counterproductive.
Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth
What will be an ideal response?