External effects from a transaction indicate there is a misalignment between private and social benefits or costs.
Answer the following statement true (T) or false (F)
True
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Refer to the table above. The government sector balance is a
A) $900 billion surplus. B) $500 billion deficit. C) $2,900 billion trade deficit. D) $2,900 billion balanced budget. E) $900 billion deficit.
The tax incidence on sellers is higher if ________
A) the buyers and sellers of a good are equally sensitive to price changes B) the buyers are more sensitive to price changes than the sellers C) the sellers are more sensitive to price changes than the buyers D) the number of buyers in a market is larger than the number of sellers
A market structure characterized by a small number of interdependent sellers is called a(n)
A) monopoly. B) monopolistic competition. C) monopsony. D) oligopoly.