When an activity results in the imposition of external costs, markets will produce more than the socially optimal level of that activity
a. True
b. False
A
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Demand and quantity demanded are the same thing.
Answer the following statement true (T) or false (F)
The Federal Deposit Insurance Corporation:
A. has eliminated bank failures. B. insures all demand deposits without limit. C. insures all demand deposits up to $250,000. D. includes commercial banks and state-chartered banks as its members.
Comparative advantage is determined by
A) actual differences in labor productivity between countries. B) relative differences in labor productivity between countries. C) Both A and B. D) Neither A nor B.
Which of the following is consistent with a competitive market?
A.) A small number of firms B.) Exit of small firms when profits are high for large firms C.) Zero economic profit in the long run D.) Marginal revenue lower than price for each firm