If there are external benefits associated with the consumption of a good or service
A. the private demand curve will underestimate the true demand curve.
B. the market demand curve will be the vertical summation of the individual demand costs.
C. the private demand curve will overestimate the true demand curve.
D. consumers will be willing to pay for all these benefits in private markets.
Answer: A
You might also like to view...
Other things the same, an increase in velocity means that
a. the rate at which money changes hands falls, so the price level rises. b. the rate at which money changes hands falls, so the price level falls. c. the rate at which money changes hands rises, so the price level rises. d. the rate at which money changes hands rises, so the price level falls.
All other things unchanged, we expect that an increase in interest rates will tend to
A) increase the quantity of money demanded and increase velocity. B) increase the quantity of money demanded and reduce velocity. C) reduce the quantity of money demanded and increase velocity. D) reduce the quantity of money demanded and reduce velocity.
The income-expenditure identity for an open economy is:
A. Im ? Ex = C + I. B. Y = C + I + G. C. Y + G = C + I ? NX. D. Y = C + I + G + NX.
When a country's exports of goods are ________ its imports of goods in a given period, it has a trade deficit.
A. less than B. unrelated to C. equal to D. greater than