When Pigouvian subsidy is imposed on a market with a positive externality, total surplus:
A. decreases less than the increase in consumer surplus.
B. increases less than the decrease to producer surplus.
C. increases more than the increase in consumer surplus.
D. decreases more than the decrease to producer surplus.
A. decreases less than the increase in consumer surplus.
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The relationship between the MPS and the MPC is such that
A. 1 ? MPC = MPS. B. MPC - MPS = 1. C. MPS/MPC = 1. D. MPC ? 1 = MPS.
The circular-flow diagram illustrates that:
A) production generates income so that income and production are the same. B) the economy's income is less than its production. C) the economy's income is exceeds its production. D) none of the above are necessarily correct.
Which organization officially tracks all business cycles in the U.S. economy?
a. Department of Commerce b. National Bureau of Economic Research c. Bureau of Economic Analysis d. Census Bureau
When the Fed buys government bonds on the open market, the money supply expands
Indicate whether the statement is true or false