In some situations, private economic actors cannot solve the problem of externalities among themselves because of substantial _________ costs
Fill in the blank(s) with correct word
transaction
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If a union establishes by collective bargaining a wage rate that is above a competitive market equilibrium wage rate, then
A) an excess quantity of labor will be supplied. B) a shortage of labor will result. C) there will be an increase in total employment. D) management will want to substitute labor for machinery.
The economy achieves full employment when the actual rate of unemployment equals the natural rate of unemployment
Indicate whether the statement is true or false
When the rate of interest (or price of capital) decreases, the
a. quantity demanded of loanable funds by the firm will decrease b. quantity demanded of loanable funds by the firm will increase c. firm's MRP of capital increases d. firm's MPP of capital increases e. firm's MRP of capital decreases
Consumption at points on a steeper part of the indifference curve will reflect a higher marginal rate of substitution than consumption points on a flatter part of the indifference curve
Indicate whether the statement is true or false