If the consumption of a good yields external benefits, then
A. The social demand is greater than the market demand.
B. The social demand is less than the market demand.
C. The social demand is equal to the market demand.
D. There is neither social demand nor market demand for the good.
Answer: A
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The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that
A) GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located. B) GNP is always bigger than GDP. C) GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located. D) Two of the above are true.
The international capital market is
A) the place where you can rent earth moving equipment anywhere in the world. B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. C) the arrangement where banks build up their capital by borrowing from the Central Bank. D) the place where emerging economies accept capital invested by banks. E) exclusively concerned with the debt crisis that ended in the 1990s.
What types of rules for monetary policy may be sensible for policymakers to consider? What is the advantage of using rules over discretion? What problems might there be with rules?
What will be an ideal response?
A firm that generates zero economic profit usually has
A) negative business profit. B) zero business profit. C) positive business profit. D) business profit equal to half the total revenue.