Productive inefficiency implies that
What will be an ideal response?
it is possible to obtain gains in one area without losses in another
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Changes in reserve requirements directly and immediately affect
A) the monetary base. B) banks' holdings of securities. C) the Fed's holdings of foreign exchange. D) the money multiplier.
On efficiency grounds, corrective taxes should not be given as compensation to those individuals harmed by negative externalities
a. True b. False
Which of the following is least likely to be a reason for the difficulty in measuring poverty across countries?
a. Different currencies b. Different customs c. Different living arrangements d. Different trade balances e. Limited data
Refer to the graph shown. According to the graph, this monopolistically competitive industry is currently:
A. in long-run equilibrium, and so the number of firms will remain unchanged. B. in short-run equilibrium with economic profit equal to zero. C. not in long-run equilibrium, and we would expect some firms to exit this industry. D. not in long-run equilibrium, and we would expect more firms to enter this industry.