If a positive externality is associated with the purchase of smoke detectors:
A. the marginal social benefit of smoke detectors exceeds their price.
B. more than the efficient quantity of smoke detectors will be sold.
C. the marginal social benefit of smoke detectors equals their price.
D. the marginal social benefit of smoke detectors is zero.
Answer: A
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In the year after the stock market crash of 1929, stock prices on average ___
a. were lower than they had been in decades b. were lower than in 1929 but higher than in the mid-1920s c. rebounded to a level higher than in 1929 d. cannot be reliably calculated because no buyers could be found for many stocks, and hence no prices were reported
In an aggregate demand and aggregate supply graph, an expansionary fiscal policy can be best illustrated by a:
A. leftward shift in the aggregate demand curve. B. change in the price level. C. leftward shift in the aggregate supply curve. D. rightward shift in the aggregate demand curve.
The process of entry and exit into a monopolistically competitive market continues until:
A. price is equal to average total cost. B. long-run equilibrium is reached. C. profits are zero. D. All of these statements are true.
When a tariff is imposed, the supply curve for the imported good
A) shifts downward and to the right. B) shifts upward and to the left. C) does not change. D) becomes perfectly inelastic.