We typically call an external cost:
A. a societal drain.
B. a negative externality.
C. a negative cost.
D. a network externality.
B. a negative externality.
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A welfare loss occurs when a monopolist chooses not to produce units of output that are of greater marginal value to consumers than the marginal cost of producing them
a. True b. False Indicate whether the statement is true or false
The unemployment rate never falls all the way to zero. What percentage does it never seem to get below and stays that low only for very short periods?
a. 1% b. 2% c. 3% d. 4%
The "invisible hand" refers to the control that government must exercise over a market economy
a. True b. False Indicate whether the statement is true or false
Expansionary monetary policy will only temporarily depress interest rates in a basic proposition of the __________ school.
Fill in the blank(s) with the appropriate word(s).