A negative externality is
A. a type of tax.
B. a type of subsidy.
C. a type of money price.
D. linked to external costs.
E. linked to external benefits.
Answer: D
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Is a single-price monopoly efficient?
A) Yes, because it creates a deadweight loss. B) No, because it creates a deadweight loss. C) Yes, because consumers gain and producers lose some of their surpluses. D) Yes, because consumers lose and producers gain some of their surpluses. E) Yes, because it produces the quantity at which MR = MC.
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) equal to its revenues; small relative to its liabilities. B) high; large relative to its liabilities. C) high; small relative to its liabilities. D) low; large relative to its liabilities
Which institutions can create money?
A. Mutual funds and retirement funds B. The government and its agencies C. The Fed and the banks D. Households and corporations
Whenever total planned expenditures differ from real GDP
A) unplanned inventories will remain unchanged. B) government spending will adjust. C) tax revenues will move the economy back to equilibrium. D) unplanned inventories will change.