When there is an externality in a market
A) government intervention may increase economic efficiency.
B) the government should use price controls to enable the market to reach equilibrium.
C) the externality will move the market to an economically efficient equilibrium.
D) the externality will cause the market price to be less than or greater than the equilibrium price.
A
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The positively-sloped part of the long-run average total cost curve is due to which of the following?
A) Diseconomies of scale. B) Diminishing returns. C) The firm being able to take advantage of large-scale production techniques as it expands its output. D) The increase in productivity that results from specialization.
In the market for Canadian dollars measured in US dollars, the demand for Canadian dollars is
a. The supply of Canadian dollars b. The demand for US Dollars c. The supply of US dollars d. None of the above
Which of the following is NOT a mechanism the high-growth Asian economies used to share wealth across all layers of society?
A) Significant investments in rural infrastructure B) Free public education C) Tax policies that strongly redistributed income from rich to poor D) Land reform
Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not
What will be an ideal response?