When there is a positive externality in a free market, too much of the good is produced and consumed
Indicate whether the statement is true or false
FALSE
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />If both players choose their dominated strategy they will each earn ________, and if both players choose their dominant strategy they will each earn ________. A. $900; $1000 B. $1000; $900 C. $500; $1350 D. $900; $1350
The income that people earn is called
a. national income b. personal income c. disposable personal income d. transfer payments e. net national product
The functioning of the labor market primarily affects the shape of the
A. aggregate supply curve. B. money demand curve. C. aggregate demand curve. D. planned investment curve.
Which will not be a determinant of the price elasticity of demand for an input?
A. The price of the input B. The substitutability of other resources for the input C. The elasticity of demand for the product it produces D. The total cost of an input as a proportion of the total cost of producing units of output