What would happen in a free market system when production of a good generates negative externalities?
A. There is a surplus of the good.
B. There is a shortage of the good.
C. The equilibrium quantity of the good is less than the efficient amount.
D. The equilibrium quantity of the good is more than the efficient amount.
Answer: D
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The prisoners' dilemma is an example of a(n) ________ game
A) simultaneous move B) extensive-form C) zero-sum D) mixed strategy
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results: 
Based on the above information, a one percent increase in the level of unemployment in the county results in an increase in losses due to theft of ________ more losses per week.
A. $460 B. $75 C. $211 D. $280
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A. when market demand is inelastic, if the market price falls, then total revenues will decrease. B. when market demand is unit elastic, if the market price rises, then total revenues will not change. C. when market demand is elastic, if the market price declines, then total revenues will rise. D. when market demand is inelastic, if the market price rises, then total revenues will decrease.