Markets tend to underallocate resources to the production of a good when
A. there are positive externalities.
B. equilibrium occurs.
C. there are negative externalities.
D. there are public goods produced.
Answer: A
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Would the Federal Reserve respond more aggressively with interest rate cuts in a recession caused by a decrease in spending, as in the 2001 recession, than in a recession caused by an increase in oil prices, as in the 1974-75 recession?
What will be an ideal response?
During the 1930s,
a. ordinary citizens were not allowed to hold gold. b. the US government fixed the price at which the Treasury would by and sell gold. c. production of gold soared. d. All of the above are correct. e. Only a and b are correct.
For a monopolist, there is no difference between the market demand curve and the demand curve the monopolist uses when making output decisions
a. True b. False
In the opinion of many people, ________ is the main problem of international law.
Fill in the blank(s) with the appropriate word(s).