When there is a negative externality in a market, too much of the good is produced
Indicate whether the statement is true or false
TRUE
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A prominent aspect of the recent Great Recession, but not of the Great Depression of the 1930s, is ________
A) bank panics B) mortgage defaults C) an increase in the credit spread D) nonconventional monetary policy
A natural monopoly is characterized by the fact that its average costs increase rather than decrease when its output expands
a. True b. False Indicate whether the statement is true or false
If a nation is going to benefit fully from technological advances and entrepreneurial ideas, it must
a. be relatively easy for persons from diverse backgrounds to try out their ideas at a relatively low cost. b. have a mechanism that will bring unsound projects to a halt. c. have a central investment authority that will review projects and decide which should be undertaken. d. be both a and b.
Wealth is redistributed from creditors to debtors when inflation was expected to be
a. high and it turns out to be high. b. low and it turns out to be low. c. low and it turns out to be high. d. high and it turns out to be low.